Bitcoin has seen a significant decline, now approaching the $84,000 mark, reflecting a weekly loss exceeding 7%. This downturn is not an isolated event; it has also negatively impacted major altcoins, with Ethereum registering an even steeper decline of over 13% within the same timeframe. The selling pressure has been pervasive, affecting large-cap altcoins such as Solana, XRP, Dogecoin, and Cardano, which all recorded substantial losses ranging from high single-digit to double-digit percentages.
Despite the downturn, trading activity remains robust. In the last 24 hours, Bitcoin experienced trading volumes near $50 billion, while Ethereum saw more than $27 billion exchanged. This suggests that traders are actively repositioning rather than withdrawing from the market.
Analyzing the 4-hour chart for Bitcoin, the cryptocurrency continues to struggle below recent highs, unable to reclaim the pivotal $90,000 level. The price action indicates a series of lower highs following a sharp breakdown earlier in the month, with current values hovering in the mid-$80,000s. Technical indicators such as the Relative Strength Index (RSI) linger below the neutral 50 threshold, indicating weak buying momentum, while MACD readings remain negative, pointing to ongoing bearish sentiment. Efforts to initiate short-term rebounds have consistently met renewed selling pressure.
Recent derivatives data reveals a significant impact on bullish traders, with total liquidations exceeding $513 million in just 24 hours. Long positions were disproportionately affected, accounting for the majority of losses. Notably, Bitcoin alone saw over $167 million liquidated, with Ethereum following closely with approximately $127 million wiped out. The scale of these liquidations highlights the challenges faced by leveraged long positions as the market experiences downward pressure.
The Crypto Fear & Greed Index has plunged to 22, indicating a heightened state of fear among investors. This level of sentiment often correlates with both prolonged downtrends and potential stabilization, depending on broader market dynamics. The current market landscape is marked by rising caution as traders respond to falling prices and persistent volatility without a clear bullish catalyst.
As risk appetite diminishes, altcoins have significantly underperformed relative to Bitcoin. The weekly losses for Solana, Dogecoin, and Cardano have exceeded those of Bitcoin, reflecting a cautious approach from traders. In contrast, stablecoins have maintained their pegs, with USDT and USDC absorbing capital fleeing from more volatile assets.
