With the crypto market crash, and Bitcoin price drop to below 56k with recent dormant BTC whales activity, what comes next: a correction or further crash soon?
The cryptocurrency market took a significant hit this weekend as Bitcoin price dropped below the $56,000 mark, triggering a wave of sell-offs across altcoins. With mounting fears of a further decline, the market remains volatile and uncertain. Here are the major crypto market crash news.
Crypto Market Crash News
Bitcoin Price Performance
After a brief recovery on Saturday, Bitcoin plummeted by 4% on Sunday, dragging the altcoin market into a bearish zone. Currently trading at around $55k, Bitcoin has experienced a 1.30% intraday loss, with a low of $54,296. This downward trend has extended into Monday’s early Asian trading hours, signaling potential further declines.
Altcoin Impact
The bearish sentiment has heavily impacted major altcoins. Ethereum, Solana, and Toncoin have dropped by 3.99%, 5.3%, and 4.67% respectively. Meme coins have suffered even more, with DOGE, SHIB, and PEPE down by 6.51%, 4.95%, and 11.23%.
Bitcoin Price Analysis
Weekend’s BTC Price Drop Analysis
Bitcoin price’s sharp decline has reset the bearish trend. The 4% drop on Sunday created a bearish engulfing candle, exacerbating the bearish sentiment. Long liquidations totaled $111M on Sunday and continued with $75M early on Monday, reinforcing the downtrend.
Bitcoin Network Hashrate Drawdown
The Bitcoin network’s hashrate drawdown has reached critical levels last seen in December 2022. Historically, such drawdowns have preceded major price movements, suggesting a potential market bottom or an impending bullish phase. However, the current price action continues to signal bearish trends.
Major External Influences: Mt. Gox Payout
The ongoing Mt. Gox payout from the collapsed crypto exchange has heightened market fears. Creditors will receive Bitcoin or Bitcoin Cash over the next few months, potentially injecting around $2.71 billion into the market. This significant supply could induce further volatility.
Future Outlook and BTC Price Prediction
BTC Price Prediction
With the current market crash, and mostly BTC price drop over the past hours, following major news and factors, combined with the dormant Bitcoin whales activity, it is not likely for BTC price crash to be over soon, and as for BTC price prediction for the next hours, it would be hard to surpass $60K or make any correction without a major positive news. However, on the long term, BTC price drop will not last and it will surge back. For the time being it will keep on bouncing between lows of $55K-$56K and slight recovery to highs of $58K.
The next significant support level for Bitcoin is at $52,000, which could serve as a bounce pad for a potential bullish rally. The death cross possibility between the 50-day and 200-day EMA further amplifies the bearish outlook.
Crypto Market Prediction
With ongoing fear, uncertainty, and doubt (FUD), the crypto market crash news is not pleasant as it is likely to continue, with its downward trajectory. With BTC price drop affecting that of altcoins and meme coins. With some showing slight recovery in the next few hours.
Altcoins Price Prediction
As Bitcoin struggles, altcoins may face increased liquidations and further price drops. Investors should brace for potential downturns and market instability in the coming week. Ethereum price will struggle to regain back the $3K level or even maintain with the downtrend pressure, as for Solana price, it will drop further to $129 and correct back to $133 with a resistance level at $135, while XRP will keep on struggling to stay above $0.40, bouncing between $0.41 and $0.42 for a while.
The crypto market crash news holds no optimism in the short term as it is navigating through turbulent times with Bitcoin leading the crypto market crash. The combination of technical indicators, market sentiment, and external factors like the Mt. Gox payout are all contributing to the current bearish trend. Staying informed and cautious is crucial for navigating this volatile period.
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