Bitcoin Price Slumps to $58,000 As Crypto Market Loses $120 Billion
The crypto market is in a slight recession right now as its market cap was reduced by almost $120 billion in less than 24 hours. First, it was bitcoin price reducing by almost $4K to trade below the much-celebrated $60K milestone. It trades within the $58K range. Following bitcoin’s value loss, most other altcoins also experienced a value slump.
Bitcoin Now Trades Within The $58,000 Range
It was a bullish weekend for the king coin. After experiencing an addition of about $1K value in the early hours of Saturday, it broke its previous ATH of $58.4K which was set roughly one month ago later in the day. After a couple of tries, the primary cryptocurrency surged past the much anticipated $60K price tag and kept moving on to set a new peak price of almost $62,000 (according to Bitstamp). Unfortunately, it couldn’t maintain that upward momentum before a price decline to the $57K range, dipping by almost $4K in the process. It has continued to fluctuate between the $57K and $58K range since that time. Rafael Schultze-Kraft tweeted that within the few minutes that BTC price rose, traders liquidated more than $100 million of short positions. CompaniesMarketCap reports that BTC’s surge to $61K raised its market cap to almost $1.2 trillion which is slightly below the market value of Alphabet (Google) which currently stands at $1.385 trillion.
Technically, if bitcoin should dip further, it would require these support levels $57,700, $56,120 and $55,550. However, it can resume its bull run by overcoming these resistance lines: $60,100, $60,737 and $62,190.
BTC/USD. Source: TradingView
Alts On a Slump: Market Cap Down by Almost $120B
While most altcoins experienced some gains during the weekend, they have also declined sharply in price in the last 24 hours. After reaching $1,940 yesterday (a 3-week high), it currently trades a little over $1,800. Other altcoins are also on a slump right now, chainlink (-4.9%), Litecoin (-5.5%), Uniswap (-8.15%), ripple (-3.87%), Cardano (-4.6%), Polkadot (-3.2%) and Binance coin (4.7%)
Crypto coins overview. Source: Quantify crypto
Other lower and mid-cap altcoins showed more price fluctuations. At a 20% price decline, Pundi X suffered the biggest hit in price loss; it now trades at $0.0033. Other mid-cap altcoins that also suffered heavy price losses include bitcoin (-9.9%), bitcoin gold (-10.9%), Zilliqa (-10.8%), near protocol (-11.9%), CRO (-12.8%) and BitTorrent (-12.9%). While a few crypto assets surged in price, the net market cap for all the crypto assets in the past 24 hours has been a slump. Some of the gainers are Enjin coin (42%), harmony (44%) and holo (71.5%). After reaching a new ATH at about $1,900 trillion, the metric has since lost $120B.
Since digital coins are always susceptible to the crypto market’s volatility, it isn’t new when there are big fluctuations in the prices of crypto assets. However, some analysts believe that this sharp drop in price won’t remain so for long. Hence, they recommend that traders take a bear position now.
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