Bitcoin Teases Weekly Lows as Altcoins Plummet
Mass Liquidations Looming
The cryptocurrency market experienced an unusual weekend, characterized by the volatile performance of Bitcoin (BTC), which predominantly saw negative movements. Altcoins, on the other hand, faced even more challenging conditions, with cryptocurrencies like DOGE, APT, and WIF witnessing sharp declines of over 5% in the past 24 hours alone.
The trading week started off on a positive note for Bitcoin, as it surged from a high of $67,500 to surpass $71,500 in the early hours of Monday and Tuesday. Investors continued to push the price higher, briefly reaching $73,600 on Tuesday evening, coming close to setting a new record. However, the outlook quickly shifted, and BTC retreated to $72,000 by Wednesday.
The situation worsened in the subsequent days, with the cryptocurrency dropping to $68,800. Although there was a brief recovery to $71,600, it soon faced a significant rejection. This led to intensified selling pressure, driving the price down to $68,800 on Saturday, ultimately reaching a new weekly low below $68,000 early on Sunday.
Bitcoin is currently trading at around $68,200, experiencing a 2% daily decline, and its market cap has fallen to approximately $1.35 trillion. Despite the challenges, Bitcoin’s dominance over altcoins has increased to 56.6%, according to the dominance index.
Amidst these turbulent market movements, cryptocurrency analyst DonAlt has expressed concerns about the position of Bitcoin bulls. In a recent video, he cautioned his followers about the risk of a new wave of liquidations if Bitcoin ends the week below $70,000. According to DonAlt, such a scenario could trigger a cascade of sell-offs, potentially driving the price of the cryptocurrency down to the $50,000 range.
“I believe there are many people who are in a position where they don’t necessarily want to own crypto for the sake of it. They want to own crypto because they expect it to rise due to Trump winning. I think that’s a risky position to be in,” explained the analyst.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.