The crypto market is in a red sea as Bitcoin, the world’s largest cryptocurrency by market capitalization, has dropped more than 10% in the past 24 hours. At the time of writing, the Bitcoin price is changing hands at $36,730.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price down about 40% from all-time high
Uncertainty has increased as investors shed stocks in favor of cash in preparation for an impending rate hike. Riskier assets, including tech stocks and cryptocurrencies, experienced the harshest declines. Bitcoin may have more room to crash, with its posterior support line around the $36,000 price level forming in early August.
The dramatic increase in volatility highlights increased uncertainty among market participants, many of whom will reallocate holdings before the Federal Reserve reduces asset purchases. production and increase interest rates. Investors are concerned about the market in the near-term as the previous increase in the Federal Funds Rate has led to the market going down.
Bitcoin fell above the support, keeping it in the $44,500 and $40,000 range and sliding to the $36,600 level. The August support line at $36,000 shows more room for downside. If BTC falls further, it could endure a more sustained bear market until it reaches the following heavy support line around $30,000.
With Bitcoin hitting below $38k for the first time since August 4, here’s a table of how much the price has changed towards the crypto’s top cap since November 8th.
- BTC chart with 44% downtrend
- ETH chart with 43% downtrend
- BNB chart with 37% downtrend
- ADA chart with 46% downtrend
- SOL chart with 52% downtrend
- HEX chart with 12% uptrend
- XRP chart with 48% downtrend
The source: Santiment
Bitcoin took over the rest of crypto as it dwindled. Over the past 24 hours, the top cryptocurrencies by market capitalization have fallen significantly. Ether (ETH) is down more than 15% and Binance Coin (BNB) is close to 13%. Cardano (ADA) and solana (SOL) are down nearly 15%. Over the past day, the entire crypto market capitalization has dropped from over $2 trillion to less than $1.8 trillion, losing almost $240 billion.
Given the current market pressures, specifically with the federal funds rate on the rise, it may be difficult for the bulls to bounce back. If bitcoin breaks through the support, it can drop to $30,000 and below the two-year moving average multiplier — representing a significant buying opportunity.
The overall crypto market cap is $1.692 trillion and Bitcoin Dominance is 40.8%.
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