Key takeaways
- BTC dips below $118k as altcoins record huge losses.
- The leading cryptocurrency could drop below the $116k support level if bearish sentiment grows stronger.
Bitcoin stagnates around $117k as altcoins bleed
The cryptocurrency market has been bearish over the last 24 hours after enjoying a bullish trend over the last couple of days. Bitcoin, the leading cryptocurrency by market cap, is down by less than 1% in the last 24 hours and now trades around $117k.
However, altcoins recorded heavy losses as they undergo a correction. XRP is down 11% and risks dropping below $3.0 while Ether could drop below $3,500 after losing 3% of its value.
Solana, BNB, TRX, ADA, and Dogecoin are all trading in the red. The bearish performance saw the total crypto market cap decline by 2.6% to now stand at $3.85 trillion. This comes a few days after the total crypto market cap hit a record high of $4 trillion.
BTC risks dropping below $116k if selling pressure increases
The BTC/USD 4-hour chart is bullish and efficient, suggesting that the bulls are still in control despite signs of weakness. The technical indicators remain bullish but have slowed down over the past few days.
The pair is currently consolidating and could either expand to the upside to a new all-time high or face a correction downward. BTC could likely retest the $116k support and TLQ level over the next few hours. The TLQ level could serve as a liquidity to push BTC’s price higher. However, failure to defend this level could see BTC drop lower.
The MACD lines are in the neutral zone, suggesting that the market is consolidating. The RSI of 51 also shows that buyers are losing control of the market.
If the bulls fail to defend the $116k support level, BTC could experience a sharp decline towards the next support at $112k. However, if the TLQ at $116k serves as a springboard, it would push BTC above the $120k resistance and towards a new all-time high.