Altcoins Bearish as Market Correction Continues
The cryptocurrency market is experiencing a notable downturn as altcoins suffer a $28 billion loss in market capitalization. While Bitcoin has dipped under $51,000, the alpha cryptocurrency’s decline is relatively milder compared to the altcoin sector. The upcoming Nvidia earnings report, anticipated to negatively impact the stock market, has spilled over into the crypto space, fueling further sell-offs. However, some altcoins have already reached their local support levels and are showing signs of recovery.
The Altcoins’ $28 Billion Drop
The total market capitalization, excluding Bitcoin and Ethereum, reveals a clear picture of the altcoins sector, which has seen a 5% decline, amounting to a collective loss of $28 billion. Despite this significant dip, the price is currently being held at its support level, with an additional support level at $520 billion if this level is broken.
Ethereum Struggles with Resistance
Ethereum, often considered a proxy for altcoin performance, has fallen back to the underside of the resistance band. While it had briefly approached the other side in the past few days, the negative influence of the Nvidia overhang has led to a pull-back. However, the shorter daily time frame suggests that Ethereum is still in a bullish phase, with the price remaining within an upward channel.
Evaluating Bullish Opportunities
Looking beyond the potential impact of Nvidia’s earnings report, the crypto market may soon regain momentum. Traders are faced with the dilemma of whether to buy the dip or take profits, as the decision is never an easy one. Nevertheless, support levels and fibonacci levels should be considered when evaluating entry points in altcoins and Bitcoin.
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