Over the past weekend, Bitcoin (BTC), the largest cryptocurrency by market cap, and other cryptocurrencies have been the subject of a relentless wave of sales. In the last three days, Bitcoin has dropped to $35,000 and now to $33,267. The overall cryptocurrency market value also fell close to 3%, to $1.62 trillion. Meanwhile, Bitcoin made a close not seen for four years. Here are the details…
Bitcoin and altcoins on the decline: Here’s what happened
Bitcoin dropped below $35,000 on Monday for the first time since February, while almost $250 billion from the cryptocurrency market since Thursday deleted. The other market leader, Ethereum, was trading at $2,532 at the time of writing. Terra (LUNA) was among the biggest losers, down as much as 25 percent over the weekend and is trading at around $64 at the time of writing.
However, Algorand has gained a bit of value at the time of writing, following a series of recent high-profile partnerships such as the FIFA World Cup. TRON was also one of the winners over the weekend. As we have also reported as Kriptokoin.com, the decline came after the US Federal Reserve (FED) announced a 50 basis point increase in interest rates.
BTC, for the first time below the 100-day moving average
A Twitter account named Blockchain Backer says that losing the critical support of the 100-day moving average (DMA) could lead to more sales. The cryptocurrency analyst explains the situation as follows:
Bitcoin is closing the week below the 100-week moving average. Both previous times, 2014 and 2018, the 200-week moving average led to capitulation. Today’s chart has many differences from these two times, and these two times were very similar. Big dive tomorrow!
Santiment explains that trader sentiment has once again dropped to negative levels. According to their analysis, Bitcoin has now retraced as low as $33.9k, while trader sentiment slumped to a six-week low.
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