Despite the onset of the holiday season, the cryptocurrency market is witnessing significant downturns. As predicted, the Bitcoin price plunged to $81,644, leading to concerns about potential support levels for both BTC and altcoins.
Why Are Holidays Challenging for Bitcoin?
Historically, the holiday periods since 2022 have not favored cryptocurrencies. Recent economic data has spurred fears over tariffs, prompting traders to brace for more potential sell-offs.
What Factors Are Pressuring Altcoins?
Rising anxiety surrounding the global trade conflict, along with uncertainties about tariff rates, has led to decreased risk appetite in the crypto sphere, pushing the Relative Strength Index (RSI) to its lowest points. Investors are hoping for market recovery once tariff details are clarified on April 2.
The critical price point of $89,000 continues to be pivotal. Despite repeated attempts to break through, Bitcoin faces ongoing rejections near $81,500, with further declines expected towards a target of $76,800. Should the market respond positively in early April, a close above $89,000 could initiate a rally towards the $92,800 to $102,300 range.
Currently, the overall trading volume has dropped by 30%, settling at $50 billion, with the fear index at 24. Although the altcoin season index hovers near 17, indicating weakness, a few cryptocurrencies like BERA, MKR, and MOVA have shown weekly gains, despite a recent 7% drop.
Notably, CRO Coin emerged as a standout performer this week, soaring by 30%. FORM and ZEC followed, with gains ranging from 16% to 27%. Meanwhile, SUI Coin is gaining traction in trading volume, surpassing alternatives like PEPE and TRX.
- Cryptocurrencies have plummeted nearly 70% since mid-December.
- Current closures are below last year’s lows.
- A potential shift in sentiment next month could lead to a substantial recovery.
This week will bring important developments that may trigger market fluctuations, depending on upcoming events.
