- The crypto market is currently in a downturn, with the total market cap decreasing by 3% to $2.15 trillion.
- Bitcoin's price is facing challenges and may decline further to test support levels at $52,800 or $50,000.
- Ethereum is maintaining support at its 25-week moving average and could see a rebound within a falling wedge pattern.
- Polkadot continues to show strength in a long-term uptrend; consider buying after a confirmed break above $7.236.
- DogWifHat shows signs of recovery, but consider investing only after a confirmed breakout above $2.86.
The crypto market has experienced a setback in the past day, particularly affecting the large-cap altcoin market.
This decline is largely associated with the recent FOMC decision to maintain unchanged US interest rates, which is generally viewed as a positive development.
However, contrary to expectations within the crypto community, rate cuts were not implemented, leading to a decline in Bitcoin prices and creating opportunities for altcoins to thrive.
Currently, the total crypto market capitalization has dipped further to $2.15 trillion, marking a 3% decrease over the past day.
As observed in the snapshot above, the crypto market is showing signs of recovery, with only Bitcoin, Ethereum, and a few other top 100 cryptocurrencies remaining in the red.
Regarding liquidations, approximately $360 million has been liquidated from leveraged traders in the past day, as depicted in the snapshot below:
Is this the Bitcoin bottom?
Notably, the majority of recent liquidations have stemmed from bullish positions, resulting in approximately $257 million in losses within the past 24 hours. In contrast, bearish liquidations accounted for around $102 million.
Despite attempts by bulls to regain control today, the market remains firmly under bearish influence, despite the success of certain altcoins.
Looking at the chart below, Bitcoin's decline to $56,500 appears to be decelerating. This slowing decline could be attributed to support from the 25-week moving average (red line) and the impending convergence with a multi-year ascending trendline around $52,800.
The analysis above reveals several key insights:
Firstly, it indicates the potential for further decline in Bitcoin's price, with a possible retest of the range between $52,800 and $50,000.
Secondly, it emphasizes the critical importance for bullish momentum to defend the $50,000 support level. A breach below this zone could trigger a sharp decline towards the next support level around $35,000.
Overall, bullish efforts are essential in the current range ($57,800 to $50,000) to prevent a complete shift towards bearish sentiment.
Regarding Ethereum, the chart highlights a significant move by the bears, pushing Ethereum to retest the lower support of a falling wedge pattern shown below. This raises the question: Can Ethereum recover from this challenging position?
Will Ethereum Break Below This Formation?
Our analysis suggests otherwise. Ethereum's current price at $2,900 is positioned right above the 25-week moving average, a level it has maintained since October 2023. This suggests Ethereum is likely to remain within its falling wedge pattern and potentially push upward from here. However, a drop below $2,700 could signal a significant downturn.
Is It Polkadot's Time To Shine?
Polkadot has demonstrated remarkable resilience amidst Bitcoin's decline. The key factor behind this resilience is the multi-month ascending trendline supporting the cryptocurrency since November 2023.
Polkadot is experiencing a significant rebound, with a notable 6.3% intra-day price increase. However, it may not be the ideal time to enter the market just yet. Investors are advised to wait for a trigger, specifically a break above Polkadot’s medium-term moving average, currently around $7.236.
Could DogWifHat Make a Comeback?
DogWifHat is showing signs of a potential comeback, as depicted in the chart below. The memecoin is currently positioned above an ascending trendline, suggesting that bulls may be attempting to stage a rebound from the $2.27 level.
While patience is a key virtue in the crypto market, particularly with assets like Polkadot, investors should watch for a crucial trigger above $2.86 to confirm an upward trend. Conversely, a drop below $2.27 signals a potential lower low, which could lead to further decline.
Disclaimer: Voice of Crypto strives to provide accurate and timely information, but cannot guarantee the completeness or accuracy of the content. Cryptocurrencies are highly volatile, and individuals should conduct their own research and make informed financial decisions.
