Bitcoin and most major altcoins experienced a slight retracement yesterday, with market sentiment suggesting that further price adjustments will occur throughout today. Dogecoin in particular is the worst-performed altcoin, declining by over 9% despite the recent hype surrounding it. FLOW token, Osmosis OSMO, and Chiliz follow among the losers, falling by 8-9%. Conversely, Toncoin and Stacks are the best-performed altcoins, gaining by over 5.7% each. The cryptocurrency market is currently valued at over $841.26 billion at press time, with most of the altcoins trading in the red.
Overall market analysis reveals most of the cryptocurrencies have been trading in a sideways trend over the weekend.The overall trend was likely to be a consolidation movement before the market can achieve a bullish break. Prior to that, Bitcoin and Ethereum managed to hold above key support levels of $17k and $1,200 before losing downward momentum on Monday.
Over the past week, Bitcoin has been trading between $17,000 and $17,300 after it saw a significant rise to a weekly high of $17,244, now sitting at around $16,944.69 with a market cap of over $325.7 billion. Ethereum and other altcoins followed the trend, recording minor gains and losses.
The overall cryptocurrency market has been quite tumultuous over the past few days, with minor price swings occurring almost daily. While we could see another small retracement today, overall market sentiment remains bearish. As such, we may see further price volatility throughout the day.
Bitcoin is still hovering near $17,000 as it faces major resistance at $17,500.The 100-day EMA has been providing strong support to Bitcoin, with a breakout likely to occur in the near future. The Fibonacci retracement tool also shows that Bitcoin could see major resistance at around the 38.2% Fib level, which is likely to provide strong selling pressure.
Ethereum on the other hand is still holding above $1,200 as it sees strong support at $1,100. However, if this support level breaks down, we may see ETH/USD retesting its weekly lows of $1,130.
Mastercard’s Grace Berkery recently commented that he believes the market-crippling event had a positive outcome, which could lead to an increase in prices as the week progresses.
The series of events involving FTX has provided the startup engagement director for the payment processing firm with an opportunity to reassess their goals and objectives in order to create a better plan moving forward.
Berkery emphasized that the recent FTX crash won’t be a strong enough discouragement for institutional investors to stop exploring the cryptocurrency space, which is ever-growing and highly volatile. Mastercard had also successfully integrated blockchain technology into its operations, leading some to believe that the company has a positive outlook on cryptocurrencies.
Going forward, the cryptocurrency market will likely experience more price fluctuations before a clear market trend can be identified.