Major altcoins follow suit with significant sell-offs and sharp losses.
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As the new week begins, Bitcoin $94,215, the largest cryptocurrency, remains priced below the crucial $100,000 threshold. Last week’s downturn was exacerbated by a sharp pullback in U.S. tech stocks and a waning risk appetite among institutional investors, fostering a sense of panic in the markets. Major altcoins like Ethereum $3,093, XRP, Solana $137, and Cardano $0.483848 experienced losses ranging from 8% to 16%. Experts attribute the technical entry into a bear cycle to reduced inflows into ETFs and the rise in sales by long-term investors.
ContentsTechnical Breakdown in BitcoinAltcoins Bleed: Solana and Cardano Take the Spotlight Technical Breakdown in Bitcoin
Bitcoin’s decline below the monthly average at $100,266 indicates that a strong support zone has dissipated. Analysts suggest that the price might consolidate between the $93,000 to $95,000 range. If this level is breached, Bitunix warns that the price could quickly plummet towards the liquidity gap around $89,600. On the upside, the levels of $100,200 and $107,300 are highlighted as resistance areas. The current liquidity crunch and low trading volume restrict short-term recovery potential.
LVRG Research analyst Nick Ruck states that Bitcoin’s effort to hold ground around $92,000 hinges on the upcoming release of FOMC minutes this week. According to Ruck, outflows from ETFs and signals of a death cross in technical indicators fuel the downward trend, while uncertainty in U.S. economic data may increase market volatility. The release of new data following the government shutdown is expected to be pivotal for investor sentiment.
Altcoins Bleed: Solana and Cardano Take the Spotlight
The decline in Bitcoin coincided with significant sell-offs in major altcoins. Ethereum fell by 12% on a weekly basis to $3,182, while XRP dropped to $2.25. BNB was trading at $932, ending the week with a near 8% loss. Solana was the hardest hit, plunging 16.5% weekly to $140. Dogecoin $0.158428 decreased to $0.161, and Cardano slid to $0.491, with TRX remaining relatively stable at $0.292.
BTSE COO Jeff Mei suggests that the markets might brace for potential pauses in Fed rate cuts in December. Mei believes that investors will remain cautious until new and supportive macroeconomic catalysts appear. Bitcoin’s performance has entirely erased the 30% gains it made at the year’s start, indicating weakened institutional demand and a shift towards risk aversion in the market. The accelerated 25% decline since the $126,251 peak on October 6 was fueled by statements regarding trade policies from the Trump administration.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap 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.
