As the anticipation looms over Nvidia's impending earnings report, the stock market braces for potential turbulence, echoing into the realm of cryptocurrencies. Bitcoin recently slipped below the $51,000 mark, triggering significant downward movements across various altcoins.
The market sentiment hinted at a looming correction as Bitcoin touched $53,000 earlier in the week. Now, on Wednesday, the leading cryptocurrency is already down by 2.7%. While Bitcoin might find some support amidst this uncertainty, altcoins are enduring more pronounced losses.
A $28 billion Altcoin Tumble
Data from Coingecko and Trading View unveils a striking picture of the altcoin market. While the initial glance might not reveal a substantial downturn, the reality manifests as a 5% decline, resulting in a staggering $28 billion reduction in altcoin market capitalization.
Despite the decline, the market seems to be holding at this level, with potential support at $520 billion awaiting validation.
Altcoins at Support Levels
Major altcoins have retraced to their local support thresholds, with some showing signs of recovery. Ethereum, often regarded as a benchmark for altcoin performance, has retraced to the underside of its resistance band on the weekly chart. The recent pullback, possibly influenced by Nvidia's looming announcement, halted Ethereum's upward momentum.
Bullish Outlook for Ethereum
However, a closer look at Ethereum's daily chart reveals a more optimistic narrative. The price remains within an upward channel, potentially bolstering its resilience. Moreover, strong support lies at $2,600, coinciding with a Fibonacci level, offering additional reinforcement.
Looking Forward
Beyond the apprehension surrounding Nvidia's earnings report, the crypto market might soon regain momentum. Traders face the daunting task of deciding whether to capitalize on the dip or secure profitsâa decision fraught with complexities. Nonetheless, the resilience displayed amidst market volatility underscores the enduring allure and potential of cryptocurrencies. #Bitcoin⏠#Ethereum(ETH)
