Bitcoin (BTC) Retracement Continues amid Market Plunge, ETH under $3K
The crypto spectrum has seen roller-coaster movements over the past few days. Bitcoin tested the $46,000 mark two days ago (10 February) before facing a rejection that triggered continued downward actions.
The previous 24 hours painted the crypto market red. That comes as the cryptocurrency industry remains correlated to stocks, both recording substantial drops.
The last 24 hours have been unfavorable to the overall crypto sector. The global market cap plunged beneath the $2 trillion mark again, while Bitcoin price plummeted to the lows of $41,900 (Bitstamp data). BTC’s drop had the overall market turning red, Ethereum hovering beneath $3K at the moment.
BTC Price Drops Below $42K
The crypto spectrum has seen roller-coaster movements over the past few days. Bitcoin tested the $46,000 mark two days ago (10 February) before facing a rejection that triggered continued downward actions.
The asset recorded a few successive red candlesticks following the move beneath $43,000 before finding some relief to recover towards $44,000. However, bulls failed to keep this momentum, resulting in today’s price fall.
Saturday sessions had BTC price falling under $42K again before a slight recovery to trade nearly 2% up at this publication. Indeed, the traditional stock and crypto market endured a turbulent week, with their high correlation. S&P 500 closed 1.9% lower yesterday, while Dow Jones lost 1.4%.
Altcoins in Turmoil; ETH beneath $3K
Also, the altcoin market suffered, most of the alts falling harder than Bitcoin over the past 24hours. For instance, Ethereum dropped to levels under 3K after a 5% 24-hour loss. Binance Coin hangs by a thread near the crucial technical and psychological support around $400, following a 3.3% fall at the same duration.
More substantial losses came from XRP (-4.3%), ADA (-6.7%), SOL (-9.4%) and LUNA (-4%). EGLD led the day’s gainers after a 10% drop, whereas KDA suffered most, losing 17.6%. Meanwhile, Ethereum Classic lost 13% of its price.
Market Sentiment Turns to Fear
This week’s drawdown had the market sentiment taking another hit. Crypto Fear and Greed Index returned to ‘fear’ after staying neutral for three days. The index stood at 44/100 on Saturday after touching 54/100 on Wednesday.
Decentrader discussed January’s ‘extreme fear,’ arguing that the sentiment reset follows historical patterns. The analysts’ report stated that extended extreme fear periods indicate that trends might catch market players offside.
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