Bitcoin (BTC) has lost over 13% in the past 24 hours and almost 25% over the past week as markets turned bearish following a global stock market crash that also casts a shadow on the crypto markets. BTC tumbled from above $60,000, losing key support levels, and is currently trading around the $52,700 mark.
The weekend selloff accelerated late Sunday evening, sending BTC plunging to levels not seen since February. ETH also saw a drastic fall, sending its value plummeting to lows not seen since December. The trigger for what has become an unprecedented correction in crypto could have been the Bank of Japan, which hiked its benchmark interest rate.
Panic Grips Markets
The stock and cryptocurrency markets have seen a bloodbath over the weekend and have opened in the red as prices plummeted due to economic uncertainty and the specter of war in the Middle East. To add to the conundrum, regulatory crackdown and growing fears over inflation have added to market volatility, sending prices haywire. While Bitcoin (BTC) is down over 20% in the past week, Ethereum (ETH) has lost almost all of its year-to-date gains. As mentioned earlier, the trigger for this selloff in traditional and crypto markets could have been the Bank of Japan, which announced a hike in its benchmark interest rate.
The collapse marks BTC’s worst week since the FTX collapse in 2022, and other major altcoins, such as ETH and DOGE, also sank, recording heavy losses. ETH has been down 20% over the past 24 hours and lost the $2,850 support level. Concerns about the global economic outlook have spooked the markets. Rumors about a potential bubble caused by heavy investments in AI have also led to selloffs in global stocks and have significantly impacted the crypto markets.
The tense situation in the Middle East has also added to market concerns. Traders and institutional investors are reacting to these economic and geopolitical stresses, leading to a sharp drop in value. Spot Bitcoin ETFs in the US saw their largest outflows in three months on August 2. Analysts had predicted a pullback to $54,000, but with BTC trading close to $51,000, the $50,000 level has come into sharp focus. The world’s largest cryptocurrency hit an all-time high in March 2024 and looked to surpass it as recently as July, but the recent pullback puts the price off by 20% from its all-time high.
Long-Term Traders Still Buying The Dip
Despite the drop, long-term traders are viewing developments as a potential buying opportunity. Historical data has suggested that buying during a market downturn can yield significant returns when the market rebounds, a strategy called buying the dip. Some experts have stated that current prices present a unique opportunity for investors to acquire assets like BTC and ETH at a high discount and make significant profits when the markets rebound. Google Trends data has also indicated a growing interest in the term “buy the dip,” indicating that more traders could adopt this strategy.
Bitcoin (BTC) Price Analysis
As seen in the price chart, Bitcoin (BTC) has registered a huge crash. The world’s largest cryptocurrency went into freefall over the weekend and is down by almost 12% during the current session. In fact, the crypto markets have shed over $270 billion in value, with BTC and ETH registering dramatic drops as investors sold risky assets. BTC’s price has hit its lowest levels since February 2024, with the ongoing session witnessing a low of $49,360, as sellers breached even the $50,000 price level.
Source: TradingView
BTC had been in the red all of last week after an unsuccessful attempt to push above $70,000. However, sentiment turned bearish, and by Friday, the price of BTC had dropped to $61,786, with BTC closing just above the 200-day SMA. BTC slipped below the 200-day SMA on Saturday after a drop of 1.29%, which pushed the price down to $60,992. Thanks to market factors, selling pressure intensified on Sunday, causing BTC to drop by 4.41%. As a result, BTC slipped below the crucial $60,000 price level, dropping to $58,301. The current session sees BTC down by almost 12%, with the asset currently trading at $51,737. The price hit a low of $49,360 but has recovered to climb back above $50,000.
Looking at the chart, it is clear that buyers are attempting to push BTC back above $55,000, as the long tail tells us. This indicates that traders are buying at lower levels, which could help stem the price drop. If the $50,000 level can act as support, we could see BTC recover to some extent as buyers enter the market at this level. With the RSI also entering the oversold zone, it is another indication that we could see the price stabilize in the short term.
Ethereum (ETH) Price Analysis
Ethereum (ETH) turned negative for 2024 as panic gripped traditional and cryptocurrency markets. ETH is down by a staggering 21% over the past 24 hours and almost 32% if we look at weekly figures. The cryptocurrency lost crucial support levels as bearish sentiment intensified over the weekend, driven by several factors, including a pessimistic economic outlook and an intensifying crisis in the Middle East. Like other cryptocurrencies, ETH spent most of the previous week in the red, but the weekend selloff has been unprecedented. Sentiment began turning more bearish on Friday as ETH fell by almost 7%, losing the $3,000 support level and settling at $2,987.
Source: TradingView
The weekend saw ETH continue to drop, falling by 2.79% on Saturday to settle at $2,904. ETH had a strong level of support between $2,800 and $2,850. This was breached on Sunday after a drop of 7.41% sent ETH plummeting to $2,688. The current session sees ETH down by 13.50%, with the price currently at $2,319. Sellers had managed to drive ETH to a low of $2,128, sparking fears the price could dip below $2,000. However, demand picked up at lower levels, indicating support, and ETH managed to recover, as seen in the price chart. As we can also see, the RSI has also slipped into the oversold zone, indicating that we could see the prices recover.
If buyers can help ETH recover, it will first attempt to push above $2,500 and then try to reclaim the $2,850 support zone. A broader base of investors will feel the latest crypto downturn thanks to spot ETFs for BTC and ETH, which saw significant outflows.
Solana (SOL) Price Analysis
With the cryptocurrency markets witnessing a sharp downturn, Solana (SOL) has also witnessed a steep decline, with the price down by almost 14% over the past 24 hours. The crypto markets had been bearish the previous week, and although SOL started the week brightly with a push towards $200, the markets turned bearish as the price fell to $182 on Monday. By Friday, SOL had dipped below the 20-day SMA and settled at $152, just above the 50-day SMA. The weekend saw bearish sentiment and volatility intensify as SOL slipped below $150 on Saturday, dropping below the 50 and 200-day SMAs to settle at $142.
Source: TradingView
SOL slipped below $140 on Sunday, falling to a low of $131 before recovering and settling at $138. The current session has intensified bearish sentiment, with SOL down over 11%. Sellers had pushed SOL below the crucial $120 level, with the price hitting a low of $109 and raising the possibility of a tumble below $100. However, with strong demand at lower levels, SOL could push back above $120 and is currently trading at $123. With the RSI sitting just above the oversold zone, we could see a recovery in the short term.
Analysts had predicted that if SOL drops below $120, the price could drop to the $105-$107 support zone. However, ETH has managed to push back above $120. A recovery from this level could see SOL target $140 and then move above $150.
Ripple (XRP) Price Analysis
Ripple (XRP) has crashed by 23% over the past week as the selloff intensified over the weekend. The past 24 hours have seen the asset register a drop of almost 15%. However, despite the staggering drop, analysts remain hopeful for a recovery. Like other cryptocurrencies, XRP has been devastated over the weekend, with the current session taking a significant toll, with XRP down by over 10%.
Source: TradingView
XRP has been in the red since Wednesday, turning bearish after reaching a high of $0.659. By Friday, XRP had dipped below the 20-day SMA and settled at $0.560. Saturday saw the price register only a marginal drop of 0.87%, as XRP managed to stay above $0.55. However, selling pressure intensified on Sunday, causing XRP to drop by almost 6% to $0.523. The current session sees XRP down by almost 11%, with the price slipping below $0.50 and currently at $0.467 after hitting a low of $0.436. XRP’s performance mirrors that of other cryptocurrencies. However, analysts are hopeful it could soon return to positive territory, highlighting that the $0.39 to $0.48 range is a critical target zone. If XRP can push above this level, its price could resume an upward trajectory.
Currently, XRP is trading at $0.466. With the price pushing upwards from its day low, buyers will look to push the price above $0.50. A close above this level could set XRP up for a push to $0.55 and higher.
Toncoin (TON) Price Analysis
Toncoin (TON) has been unable to push above the 20-day SMA since mid-July, with its price stuck in a narrow trading range thanks to the SMA acting as a dynamic level of resistance and a strong support level at $6.50. TON slipped below this level on Friday, hinting that sentiment had turned bearish, dropping nearly 9% as it slipped below $6.50 and settled at $6.18. Saturday saw selling pressure persist as the price fell by another 3.40% to go below $6 and settle at $5.97.
Source: TradingView
TON registered a marginal increase on Sunday, pushing it above $6. However, with the selloffs in the larger crypto markets, TON fell back during the current session and is down over 12%. The price had slipped below the 200-day SMA earlier in the session, reaching a low of $4.93. However, TON recovered and is currently trading at $5.28, back above the 200-day SMA. With the RSI in the oversold zone, we could see TON recover further in the short term.
Polkadot (DOT) Price Analysis
Polkadot (DOT), whose price had already been reeling over the past few weeks, fell deeper into the red, crashing to lows that had not been seen since November 2023. DOT is down a staggering 21% over the past 24 hours and almost 33% over the past week, with selling pressure yanking the price below $4, putting further pressure on the struggling token. DOT had already been in the red since July 22, when it fell below $6. By the middle of the previous week, DOT dipped below $5.50 and fell to $5.12 by Friday. DOT remained above $5 on Saturday, falling by 1.37% to $5.05.
Source: TradingView
However, Sunday saw DOT fall below this crucial level, with the price dragged down due to the larger selloff in the crypto markets. As a result, DOT fell by over 7% to $4.68. The current session sees DOT down by a staggering 16.45%, with the price going below $4 and trading at $3.90. So, where does DOT go from here? DOT hit a low of $3.60 during the ongoing session. However, the price recovered marginally to get to its current level.
DOT’s recent troubles have ignited a debate about the asset’s inflation, with some blaming the network’s growth for the asset’s price drop. DOT’s current RSI sits well inside the oversold zone but has stayed below average since April, indicating long-term bearish sentiment. Some community members have advocated reducing inflation to stem DOT’s decline, while others have stated that continued network growth is key to DOT’s prospects. Until a solution is found, DOT’s price will continue to remain greatly subdued.
Celestia (TIA) Price Analysis
Celestia’s (TIA) recent slide has seen the token slip below $5, as it struggles in an increasingly bearish market. TIA has been in the red all of last week, except Thursday, when it registered a sharp increase after bouncing off its support level and rose to $5.58. However, it was back in the red on Friday, dropping to $5.32. TIA remained bearish over the weekend as bears pushed the price below $5. TIA fell to $4.99 on Friday and ended Sunday with a further drop of 5.49%, pushing the price down to $4.72.
Source: TradingView
TIA is down over 6% during the current session and is currently trading at $4.41. The token had dropped to a low of $3.94 but has since pushed back above $4. The recovery indicates demand around $4, which could prevent the price from dropping further. For the short term, TIA must reclaim the $5 level. If it does so, it can push towards $5.50. Resistance lies at $5.85 and $6, thanks to the 20 and 50-day SMAs.
PEPE Price Analysis
PEPE has plummeted below $0.000010 as meme coins also tumble thanks to the market selloff. PEPE has crashed by almost 27% in the past 24 hours and nearly 50% over the past week as the markets face unprecedented bearish sentiment. Losing the psychologically important $0.000010 level has sent the meme token into freefall. PEPE fell by 12.10% on Friday, falling to $0.0000093. The weekend saw the price continue to drop, falling by 6.56% on Saturday and 6.10% on Sunday to settle at $0.0000081.
Source: TradingView
PEPE fell below the 200-day SMA during the ongoing session, with many expecting it to stabilize around $0.0000065. However, thanks to the prevailing bearish sentiment in the markets, PEPE fell below this level as well and is currently trading at $0.0000061, a drop of over 24%. If the drop continues, PEPE is likely to continue dripping until it falls to $0.0000050, after which the price may stabilize.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
