Cardano (ADA) is up 4% in the past 24 hours as the Vasil hard fork is fast approaching.
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The global crypto market capitalization currently stands at $943 billion, with a 9.7% drop in total crypto exchange volume from the previous day. Market sentiment turned sour last week with Ethereum (ETH) leading the pack. ETH recorded the highest loss of 24% since the January 2022 upgrade after the merger. Investors were cautiously pessimistic when news of initial block production by centralized entities like Coinbase and Lido surfaced in addition to selling pressure from miners. Bitcoin (BTC) and several altcoins reacted quickly to the pullback from ETH by pulling back over the week. In this article, we will briefly discuss the price action of BTC as well as an overview of the altcoin market.
Bitcoin under $20,000
Bitcoin (BTC), the largest crypto by market cap, has been falling for months with scattered relief rallies. Macro tailwinds strongly influenced BTC price movements as crypto assets showed increased correlation with tech stocks and inverse correlation with the dollar index.
Uncertainty surrounding interest rate hikes following the release of inflated CPI inflation data and the recent completion of the Merge upgrade has clearly impacted investor sentiment. Bitcoin was also one of the hardest hit, suffering a weekly loss of 12.8%. However, it is currently trading near $19,300, with a 5% rise in the last 24 hours.
BTC has formed a series of bearish flags since its mid-August low of $25,000. After trading for weeks below its resistance at the descending trendline, it made another attempt to raise. BTC tipped the resistance line into support and moved to $22,000 before facing a strong correction. However, with the exception of a recent pullback to $18,000, the descending trendline continues to act as a support line for BTC.
BTC is currently trading above the 0.236 fib retracement, acting as its immediate support. Another relay to the top would require BTC to break through the psychological resistance of $20,500. The bears continue to pull BTC lower and have defended the 200-week simple moving average (SMA), another crucial resistance BTC must overcome.
If the bulls manage to push the price higher towards $25,000, a trend change could be confirmed. Otherwise, bears pushing the price lower could put previous lows of $17,600 into play and BTC could test new yearly lows during this correction.
Altcoins under pressure
Among the top 20 crypto assets by market capitalization excluding BTC, ETH and dollar-pegged stablecoins, on a weekly basis, only XRP (XRP) managed to stay positive registering 6.6%. Cardano (ADA) is up 4% from the previous day as the Vasil hard fork is happening in two days, which will improve scalability. The other top 20 altcoins all have recurring weekly losses, but they have gained between 2-6% in the last 24 hours.
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Disclaimer: This article was written by Giottos Crypto Exchange in a paid partnership with The News Minute. Investments in crypto-assets or cryptocurrency are subject to market risks such as volatility and have no guaranteed return. Please do your own research before investing and seek independent legal/financial advice if you are unsure about investments.