Big Losses in Crypto
The crypto market started the week in the red. Bitcoin (BTC) dipped below $100,000, falling to around $97,470, pulling many other cryptocurrencies (altcoins) down with it. Over $567 million in crypto positions were liquidated in just 24 hours, mostly Bitcoin investors who were betting on the price going up.
Analyst Warns of Altcoin Weakness
Crypto analyst Rekt Capital, who has a large following on X (formerly Twitter), pointed out a concerning trend. Altcoins, as a group, recently hit a key resistance point. This resistance level, which tracks the total market value of altcoins (excluding the top 10), hasn’t been surpassed since 2021. Rekt Capital suggests that while the altcoin market may bounce back, the recovery might be weak.
Bitcoin Dominance and the Altcoin Outlook
Another potential warning sign: Bitcoin’s dominance (the percentage of the total crypto market it controls) is showing signs of being oversold. This usually means Bitcoin’s price might bounce back. However, this often spells trouble for altcoins, as investors might shift their money back into Bitcoin. Rekt Capital noted that this level of Bitcoin dominance hasn’t been seen since August 2023, and historically, this has led to Bitcoin dominance increasing, which usually means altcoins suffer.
Current Market Conditions
At the time of writing, Bitcoin is trading around $97,546.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Investing in crypto is risky, and you could lose money. Always do your own research before making any investment decisions.
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