The cryptocurrency market sentiment is currently bloodshed as the market capitalization of all cryptocurrencies has dipped below $800 billion. The global market cap is currently at $799.32 billion, a decline of 4.43% from last week.
Cryptocurrencies price heatmap:Coin360
The recent bearish sentiment in the cryptocurrency market has been attributed to several factors, including regulatory uncertainty and concerns over security breaches. Additionally, many investors have been wary of the extreme volatility of cryptocurrencies, which makes them unsuitable for long-term investments.
It seems that a phase of crypto winter has once again affected investors with skepticism and fear as the prices continue to dip and consolidate in most cryptocurrencies. Ethereum and Bitcoin have both experienced double-digit drops in recent weeks, and the overall market has been experiencing a significant selloff.
Bitcoin and Ethereum Technical analysis
Bitcoin is holding above $16,000 amid the significant selloff. The price of Bitcoin has declined by 4.16% in the last week and is currently hovering at $16,017.03.The BTC/USD pair closed last week’s trading session at $16,728 and started trending downwards to reach a weekly low of $15,984 The price has since then recovered to the current level as it continues to hover around resistance levels.
Bitcoin price chart: Coinmarketcap
The Fib retracement tool shows that the BTC/USD pair is currently trending towards the 23.6% retracement level if $15,700. This presents a significant resistance for the price to overcome if it wants to recover further by the end of this week
On the technical analysis front, Bitcoin seems to be holding steady amid sustained selling. However, the current level of support may not hold for very long. The chart shows that the price is trading in a steep downward trend and could slide further if the support breaks. The immediate support levels are at $15,500 and $15,200. The BTC/USD pair will likely breach the support at $15,200 if it closes below the 38.2% retracement level of $14,700.
Meanwhile, Ethereum seems to be in a continuous declining trend after breaking below $1,200, trading at $1,122.78 as of this writing. The ETH/USD also experienced a sharp pullback after failing to breach the $1,200 resistance level last week. The cryptocurrency is currently trending below the 50% retracement level of $1,080 but still well above the 38.2% and 23.6% levels.
Ethereum price action:Coinmarketcap
The ETH/USD pair is trading within a narrow range against the US dollar, which suggests that Ethereum is consolidating before its next move. The immediate resistance level is at $1,180 while the support levels are at $1,100 and $1,050. Ethereum has made several attempts to break above the 50% retracement level; however, it has faced stiff resistance at this level on each occasion.
Altcoins Performance in the last 24 hours
Dogecoin is leading the altcoin retracement as it experienced a drop of 2.35% in the last 24 hours. The price of Dogecoin is currently at $0.0024 and looks set to dip further as the overall market sentiment remains bearish.Chiliz has performed the worst despite the Fifa World cup hype. The price of Chiliz has declined by 16.82% in the last 24 hours and is currently trading at $0.1919.
Other top altcoins such as Ripple (XRP) and Stellar (XLM) are trading within a tight range as they recover from their respective retracements. However, the NEM coin, LEO coin, and USDC have made slight gains of 3.55%, 2.97%, and 0.02% respectively in the last 24 hours, indicating that these altcoins may perform better than the others in the next few days.
Overall, a bearish trend seems to be setting in as most cryptocurrencies continue to trade below their respective resistance levels amid sustained selling pressure and regulatory uncertainty. The crypto market seems to be digesting the FTX fiasco that has been the talk of the town for the last few weeks. The market has been highly volatile in the last several days, and the current downward trend may continue for a while before any significant upward movement is experienced.
