The crypto market took another hit as Bitcoin and altcoins dropped below important support levels. YouTube analyst Crypto ZX, who has over 67,000 subscribers, reported that the market lost more than $110 billion in just 24 hours. Bitcoin is stuck at the 23.6% Fibonacci retracement level, making investors worried about more drops ahead.
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Bitcoin Price Struggles to Hold Support
Bitcoin has been stuck around key support levels, and analysts warn that prices could fall further if they don’t bounce back soon. Crypto ZX points out that BTC’s price has tested the 23.6% Fibonacci level several times, showing strong market resistance. Bitcoin’s dominance has increased to 62.1%, which is pulling down the rest of the market.
Even though Bitcoin hasn’t fallen below the 23.6% level yet, there are still concerns about more downward movement. If Bitcoin can’t hold this level, the analyst thinks it could drop to between $80,000 and $85,000.
Furthermore, Crypto ZX mentioned that the broader crypto market saw more losses, with over $450 million liquidated in the past day. He noted that many altcoins like Cardano, Solana, and XRP have fallen by double digits. The total market value has dropped 7.49% to about $2.87 trillion.
Analysts say market sentiment remains cautious as traders respond to Bitcoin’s failure to break through key resistance levels. The dominance index, a key metric in understanding Bitcoin’s impact on altcoins, has shown a sharp increase, leading to further declines across the altcoin sector.
Read Also: XRP Price Breakdown Looming? Experts Predict a Drop to $1.65!
Market Uncertainty and Future Projections
Crypto ZX sees similarities between today’s market and past corrections, especially the big drops in 2021. While prices keep swinging in the short term, more people want crypto assets now, and talks about ETF filings are making the market more interesting.
Some investors think this downturn might be a good time to buy. Many talk about “being greedy when others are fearful” and consider buying small amounts regularly as prices fall. But analysts are careful, warning that if BTC’s price can’t climb back to previous levels, the whole crypto market might drop more.
Investor Sentiment and Next Steps
Everyone’s watching Bitcoin’s price to figure out where things might go next. Crypto ZX says Bitcoin needs to stay above its current support level for the market to recover.
Investors are reacting differently to all this uncertainty – some are waiting to see what happens, while others are looking for chances to buy. Analysts suggest staying informed and being careful in these market conditions.
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