The ongoing decline in the crypto market pushes prices below their expected levels. The market briefly rose in the last few months following the crypto winter. However, these gains were short-lived, and the subsequent declines have continued overthrowing the market’s short-lived rallies.
Crypto Markets Tank Following Bitcoin’s Collapse
During the peak of the crypto winter, the market cap fell below $1 trillion. That caused a lot of panic in the crypto community but the market eventually rallied and eventually surpassed this level. However, it seems that the trend is starting to move down once more.
The market cap of cryptos has slipped below $1 trillion, a significant decline from its previous high. Bitcoin’s price is currently at $21,320, which is a 1.35% loss from its previous high. This price level represents a 14% decline in Bitcoin’s value over the past week. Because of this, the total market cap of cryptocurrencies is below $1 trillion. Some analysts are questioning if this level will hold.
Despite the recent decline in Bitcoin’s value, other indicators of its value are positive. For instance, the market dominance of Bitcoin has increased by 0.5%.
The market dominance metric is a statistical measure that shows how well cryptocurrencies perform against other assets. Bitcoin’s slight increase in dominance shows that it performs better than other digital assets.
The market dominance metric’s negative correlation shows that the crypto market is unstable. Bitcoin’s 14% decline in value over the past week has caused some to believe that the market may be in for a rough week. However, despite its losses, Bitcoin’s price is still higher than other altcoins.
Below 200-week Moving Average is “Bad for Bulls”
Despite the weekend’s decline, the Material Indicators noted that the market maintained lows from July. It suggests that the 2022 bear market rally could still return.
On the other hand, Bitcoin remains under its 200-week moving average. This support level might continue to favor bears.
A post on the Binance platform showed data from the exchange’s order book, which showed that some of the largest-volume whales are trying to clear a sell wall around the current price.
According to Rekt Capital, Bitcoin could still be a bargain at around $35,000. He noted that this level represented a significant upside potential. The resistance around this level might be a major hurdle preventing the price from rising. Rekt Capital noted that a macrocycle low could be in the cards in the fourth quarter despite the recent decline.
Meanwhile, Bitcoin weekly is currently sitting at a long-term trend line that has been in place for over a decade. The line has been touched on multiple occasions, such as the bear market bottom in 2014 and the Black Thursday spike in 2020. Losing this trend line could cause a major disruption in the cryptocurrency market.
Several Altcoins Have Suffered Massive Losses
The top ten cryptocurrencies are all down around 2.8%, except Dogecoin. Among the top ten, the price of Ether is down 3%.
In the past 24 hours, various altcoins, such as SOL, UNI, LINK, and DOT, have lost 5%. Among all the losses, Celsius Network’s CEL took the lead, with a slide of 21%. Other cryptocurrencies, such as STEPN’s GMT and Ethereum Classic, also experienced significant losses, about 6%. These losses affect the overall market cap of the cryptocurrency industry, which is currently around $1 trillion.
One bright spot in the market is the price of a digital token known as EOS, which is up 11.2%. EOS’s price has increased around 4% since last week, and it’s up almost 20% in the last week. That is due to investors’ anticipation of upcoming upgrades and the court’s rejection of a proposed settlement between Block.one, a blockchain startup based in the Cayman Islands, and several other companies.
Source: https://crypto.news/crypto-market-cap-declines-to-1-trillion-after-btc-loses/