While Bitcoin is Falling, Altcoins are Crashing. Buy the Dip?
The crypto market is experiencing one of its sharpest declines since the beginning of the month. While Bitcoin is falling, altcoins are literally crashing. More than $600 million was liquidated in the crypto market in the last 24 hours.
Except for a few cryptos, almost all cryptos are in the red zone, and while Bitcoin is falling, altcoins follow it with much sharper falls.
Bitcoin Daily Chart
Bitcoin (BTC) is currently trading at $65,548. Although it dropped to $64,640 today, it quickly bounced back $65,000. It seems like some bulls are still guarding the crypto market and there are a lot of investors eager to buy Bitcoin below $65,000, indicating strong support near $65,000. However, the danger is still not over, it seems like the bears will test around $ 65,000 again, and if Bitcoin loses the $ 65,000 support, the declines in the crypto market may deepen further. On the other hand, if the bulls continue to guard the $65,000 support, a new rise may be triggered in the following sessions and cryptos may quickly regain their losses.
Despite the drops, according to the data shared by Coinglass, funding rates seem slightly positive, indicating that there may be a recovery and rise in the near future.
Bitcoin appears to have stabilized somewhat, which indicates that it may rise in the following sessions. Additionally, importan support lines are provided by the 50-day EMA and the 200-day EMA, and if Bitcoin can stay above these levels, i.e. $65,000, this could trigger a new rise. There do not appear to be significant reasons for further declines, so such declines can be an opportunity for investors. Bitcoin is still in its consolidation phase, and the consolidation phase usually occurs before a strong rally. And when Bitcoin starts to rise, I think some altcoins will follow it strongly.
Finally, I would like to say that I was very surprised that some cryptos fell so hard, especially Hive, which dropped to $ 0.20, but I think these discounted prices will not last long.
Thank you for reading
@rtonline
This is not investment advice, I am just talking about current developments and only my personal opinions. As with all money markets, anything can happen in the crypto market at any time, so please do your own research before investing.
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