The cryptocurrency market has recovered three per cent today after an eight per cent drop the previous day, bringing some cheers to the investors who feared another gloomy weekend. Bitcoin (BTC) led the recovery with a 3.5 per cent gain though BTC has dropped 7 per cent over the last week.
All top cryptocurrencies have gained between 1 and 4 per cent over the last 24 hours (ending 9am IST).
The total market is at $1.33 trillion today, with a 3 per cent daily gain, though down by 11 per cent in the last 7 days. BTC continues to dominate with nearly 47 per cent of the market, followed by Ethereum (ETH) at 16.5 per cent.
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Bitcoin continues to dominate headlines as the currency successfully tested the $30K support level yesterday and bounced immediately. Key support is now at $31K. Trading below $30K will signal a bearish sentiment with the possibility of a drop to $20K in play.
Hash rates, a computational metric that signifies security, for BTC have fallen by as much as 40 per cent this month. This is despite Chinese miners flocking to other countries with cheap electricity and relaxed regulations. High hash rates can lead to higher competition and demand for the currency.
Bitcoin fell below $30K for the first time in 2021 earlier this week amid concerns regarding the clampdown of BTC mining in China. It is imitating the Wyckoff pattern, and the support levels of $31-32K continue to be critical to negate a significant drop.
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We expect a good recovery next week, and if BTC can breach the $35K resistance level, many altcoins could grow disproportionately. BTC's price movements will continue to determine the overall shape of the market in the medium term.
Top Gainers today:
Celo (CELO): 29.7%
Harmony (ONE): 9.3%
Qtum (QTUM): 8.6%
Top Losers today:
Nexo (NEXO): - 11.4%
Celsius (CEL): -11.1%
Internet computer (ICP): -7.3%
Source: CoinMarketCap
Note: Analysis of top 100 coins
Other Crypto News at a Glance
- Paraguayan lawmakers have submitted a proposal to regulate the cryptocurrency space and squashed rumours that the country wanted to make Bitcoin legal tender similar to El Salvador.
- 90 per cent of all crypto mining in China may go offline soon as clampdown continues in the country
- A senior US Federal Reserve official has termed Tether's USDT, a US dollar-pegged stablecoin, as a "new disruptor" and called it a risk to the financial system's stability
DISCLAIMER: Views expressed are the writer's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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