The cryptocurrency market is encountering significant challenges this week, with Bitcoin plunging to a new low of $92,690. This downturn has resulted in altcoin investors experiencing substantial losses, often exceeding double digits. Given the current holiday season and the unfavorable outlook from the Federal Reserve regarding 2025, this downturn comes as no surprise. What conditions make cryptocurrencies viable for investment?
Which Altcoins Are Worth Buying?
Recent Relative Strength Index (RSI) figures indicate the overbought or oversold conditions of various cryptocurrencies. Generally, assets do not stay overbought for extended periods and are likely to retrace. The current status of over 100 cryptocurrencies, visualized on a four-hour chart, shows that nearing the peak indicates overbought conditions while approaching the lower end suggests oversold conditions.
Are Altcoins Set for Recovery?
Some altcoins, such as DOGS, NEIROETH, RARE, and SUN, are nearing oversold levels, indicating potential for recovery. Conversely, AAVE, SUI, XRP, OM, and UXLINK may face swift declines if Bitcoin continues its downward trajectory. Altcoins may experience prolonged overselling due to internal issues, posing risks for those who rely solely on single data points for investment strategies.
Key insights from this week’s market trends include:
- Bitcoin reached a new low of $92,690.
- Double-digit losses reported among altcoins.
- Several altcoins nearing oversold conditions may present buying opportunities.
- Current market analysis suggests that altcoins may have completed corrections.
In a recent update, Binance‘s investment in USUAL Coin warrants attention to notable price levels. Analysts suggest that as Bitcoin recovers, corresponding targets for altcoins might soon emerge. Furthermore, a notable prediction regarding Bitcoin’s price trajectory hints at potential growth, suggesting that there remains significant room for upward movement despite current market challenges.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-and-altcoins-face-major-price-declines