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Market Watch: Bitcoin’s Recovery Fragile as $40 Billion Wiped Off Market in 24 Hours

Bitcoin’s rollercoaster continued in the past 24 hours with a massive $2,000 dump and the subsequent recovery attempt. Most altcoins are covered in red, and the market capitalization has lost $40 billion in a day.

Bitcoin’s Wild Ride Continues

After a relatively bullish weekend in which BTC gained some value, the primary cryptocurrency seemed primed for further increases. Initially, bitcoin indeed headed north, resulting in a fresh all-time high of $24,300 (on Bitstamp).

However, the bears quickly took control and dumped the asset price to an intraday low beneath $22,000.

Nevertheless, BTC bounced off to above $23,000 following reports that the NASDAQ-listed MicroStrategy has purchased $650 million more of the cryptocurrency. Since then, bitcoin has dropped slightly and currently sits around $22,700.

Should the asset is to resume its Q4 2020 bull run, the technical indicators suggest that it would have to overcome the resistance lines situated at round price tags – $23,000 and $24,000.

Alternatively, the support levels at $22,300, $21,950, and $21,730 could assist in case another rejection arrives.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Blood On The Altcoin Street

As it typically happens when BTC displays high volatility, the altcoins feel it harder. This has been the case in the past 24 hours, with some vigorous double-digit price drops.

Ethereum traded near $680 yesterday before heading south and dipping beneath $600. On a 24-hour scale, ETH has increased slightly since the low and sits at about $605.

Binance Coin (-7.5%), Chainlink (-7%), Polkadot (-5%), and Cardano (-5.5%) have also lost substantial chunks of value. However, three top 10 tokens have plummeted by double-digits. Litecoin has lost 12% and struggles above $100, Bitcoin Cash has gone down by 16% to beneath $310, and Ripple has dumped by 17% to $0.47.

XRP’s losses could be attributed to reports that the US Securities and Exchange Commission will sue the company for issuing the XRP token as non-registered security.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Further losses are evident from Siacoin (-12%), Uniswap (-12%), ABBC Coin (-12%), Stellar (-11%), EOS (-11%), Yearn.Finance (-11%), Crypto.com Coin (-11%), ICON (-11%), and more.

Ultimately, the cryptocurrency market capitalization has dived from $673 billion to $633 billion in a day.

Crypto Market Cap. Source: CoinMarketCap
Crypto Market Cap. Source: CoinMarketCap

 

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