BTC’s Dramatic $90K Plunge Fuels Deeper Crypto Downtrend with No Recovery in Sight
The cryptocurrency market is currently experiencing significant pressure, with prices falling across major assets. The total market capitalization has dropped to $3.1 trillion, representing a notable 4.65% decline in a single day.
Investor Sentiment Declines
Traders are displaying heightened anxiety, as indicated by the Fear & Greed Index, which has plummeted to 15. This level reflects “extreme fear” among both individual and institutional investors.
Bitcoin’s Sudden Decline
Bitcoin, the leading cryptocurrency, is trading around $90,356 after a sharp dip of nearly 14% over the past week. Despite a brief attempt to rebound in the early sessions, it has struggled to recover. The price range observed is reminiscent of levels not seen since early spring.
Continued Selling Pressure
- Bitcoin remains vulnerable to aggressive selling, with many traders unable to regain confidence.
- The last few days have seen BT’s price fluctuation toward the higher $89,000s.
Ethereum and Other Altcoins Follow Suit
Ethereum is also facing challenges, currently priced at $3,023 after experiencing a 5.49% drop in just one day. It has sustained a weekly loss of nearly 15%, primarily due to large withdrawals and decreasing liquidity.
Market Activity Overview
- XRP has fallen to $2.15, down nearly 12% this week.
- BNB displayed a softer decline, currently sitting at $910 with a 6.5% weekly loss.
- Solana (SOL) experienced the highest volatility, now priced at $136.92 after shedding over 16% this week.
- TRON (TRX) remains relatively stable at $0.287, with only a slight loss of just over 3% for the week.
Market Outlook
Sellers currently dominate the market, leading to decreasing liquidity. Minor price rebounds are frequently met with selling pressure. The average Relative Strength Index (RSI) for cryptocurrencies is around 40, indicating that the market is nearing oversold conditions. However, without bullish catalysts, volatility is expected to remain high.
Future Projections for Bitcoin
Unless Bitcoin can reclaim the low-$90,000 range with substantial trading volume, traders anticipate continued uncertainty in the market. The situation remains fluid, and there are concerns that the market has yet to establish a near-term bottom.
