Bitcoin is currently grappling with a pivotal 20-day Exponential Moving Average (EMA) as it hovers near support levels below $66,000, a concerning development for holders. Meme coins, including SOL Coin, have not fared well either, with losses topping 50% for some. As the market watches closely, the BTC price, once aiming for $68,000, now risks a further slide if the selling pressure persists.
Market Sentiment Weakens Ahead of Federal Meeting
Market anxiety ahead of a key Federal Reserve meeting is causing Bitcoin’s price to stumble, threatening to drop as low as $59,000. Concurrently, activity in the Bitcoin ETF market is showing signs of faltering, raising fears that a sell-off could be imminent, especially if recent ETF buyers start liquidating their holdings. This is reminiscent of the pre-halving period, where a significant sell-off loomed over the market.
Altcoin Sphere Faces Downward Trend
The altcoin sector is not exempt from the market downturn, with currencies like AVAX eyeing a fallback to $50 if the decline continues past the $61.5 mark. SOL Coin’s valuation is under threat as well, potentially dropping to its $156 support level in light of the double-digit losses among meme coins. A waning enthusiasm for Solana‘s meme coins could trigger an accelerated selling streak.
Among the worst-hit in the altcoin group are the meme coins like BOME Coin, which has plummeted by 50% in a single day. Other meme coins such as PEPE, WIF, FLOKI, BONK, and MEME are also reeling from losses exceeding 15%. A performance chart illustrates the significant one-day and 24-hour declines across the largest altcoins by market cap.
New cryptocurrency investors often gravitate towards speculative assets like LUNA, FTT, and meme coins, enticed by quick gains during bullish market phases. However, as seen with assets like BOME on the Solana network, they are equally prone to rapid retreats following their peaks. With the current market uncertainty triggered by the Fed, meme coin holders who had previously resisted selling are now joining a wave of profit-taking and stop-loss activation, potentially exacerbating the downturn.