Market corrections are healthy and necessary after a long period of gains. Bitcoin remains above $10k this morning but pullback potential is growing as the altcoins start to see red.
Crypto markets hit a peak total capitalization of $308 billion yesterday before one swift dump resulted in an $18 billion outflow. A very slight recovery to $295 billion has followed in early Asian trading but a larger correction is now looking likely.
Bitcoin Back Below $10k
Bitcoin prices fell sharply in late trading on Saturday plunging to support at $9,800 according to Tradingview.com. Since then BTC has returned to five figures but only just, further losses are expected as the asset cools from several weeks of upward momentum.
Trader and analyst Josh Rager has noted that there is nothing wrong with a couple of weeks of downward price action which is healthy for markets.
“Many were looking for the opportunity to buy and this could present ample opportunities,”
Since its 2020 peak late last week bitcoin has lost around 4.5% to current levels. The two support zones below it are at $9,750 and around $9,300 which is where it will probably head first. Buyers may not start loading up again until BTC drops into the $8k range.
Others remain bullish stating that this was barely a blip and markets are still very strong.
“All signs of how strong this market is and how strong $BTC & ALTS are. Anyone who says they see weakness is just seeing a mirage in their head.”
As reported yesterday by Bitcoinist BTC dominance has declined to an 8 month low which means things have been very good for altcoins this year.
Altcoins Correcting
The altcoins are starting to accelerate losses today however, with double digit reds for a few of them.
Ethereum, which has surged 120% this year is due a correction as it falls back to support at $270. Losses are relatively minor at the moment with only 3% dropped so it has not been much of a dip for ETH yet.
Ripple’s XRP has shed 6% overnight while Bitcoin Cash has dumped 7% back to $450. BSV is over 10% down on the day but it is still one of the year’s top performing altcoins.
Other crypto assets correcting heavily at the moment include EOS with a 9% slide, Stellar dropping 6% and Ethereum Classic retreating by 12% over the past 24 hours. The two exchange tokens HT and OKB are bucking the trend again and posting gains at the moment.
A crypto market pullback is healthy as price does not move in a straight line. The test now will be how quickly can the bulls regain their composure.
How far will bitcoin fall? Add your price predictions below.
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