Bitcoin (BTC) has recently plunged to a daily low of $95,676, triggering a significant decline in the altcoin market. This downturn has raised concerns, as many cryptocurrencies approach their previous year’s lows. The ongoing sell-off, which began in mid-December, has put pressure on psychological price levels. Investors are now left wondering which altcoins present viable purchasing opportunities.
What Are Current Market Conditions?
Although legal challenges surrounding cryptocurrencies in the United States are beginning to diminish, interest in altcoins has still not materialized on exchanges. Liquidity issues persist, with BTC’s decline exacerbating the losses faced by altcoins. Many market participants are holding back in anticipation of BTC dipping below the $90,000 mark, preferring to sidestep altcoin risks during this unstable period.
How Are Altcoins Performing?
Recent data indicates that the average Relative Strength Index (RSI) for leading altcoins has dropped to 28 over the last 24 hours, often a precursor to a market rebound. In the coming weeks, it is expected that cryptocurrencies currently facing extreme selling conditions will recover in value. Notable exceptions, such as OM and BEL, have not faced as dramatic sell-offs, while others like XMR and BAN have remained relatively stable.
- BTC could see liquidations of $838 million if it falls below $94,000.
- A price recovery to $100,000 might trigger nearly $2 billion in short position liquidations.
- ETH has potential long position liquidations of $277 million at $2,630.
- Coinbase Premium Index shows positive demand despite declining BTC prices in the US.
Baffling market dynamics continue as Bitcoin prices drop, yet global demand remains surprisingly robust. The ongoing decrease underscores a complex landscape where traders are strategically adjusting their positions in anticipation of future volatility.
