Market Analysis: Bitcoin Correction Triggers Massive Decline for Crypto Industry

Market Analysis: Bitcoin Correction Triggers Massive Decline for Crypto Industry

The entire cryptocurrency market fell by about 8% over the past 24 hours, as Bitcoin (BTC) extended its correction. The early Asain session today was a bloodbath for the industry and shaved about $150 billion off the market cap of the industry.

The massive drop got precipitated by Bitcoin’s failure to break the crucial $56,700 resistance, as we predicted in a previous analysis.

At press time, the benchmark cryptocurrency is trading around the $52,500 area, after refreshing its two-week lows at $51,533 earlier today.

Meanwhile, Ethereum (ETH) was quick to follow in the steps of Bitcoin and fell by more than 4%, slipping below the $1,600 psychological support.

Uniswap (UNI) recorded a steeper decline than ETH and tanked by more than 10% on the day. Uniswap investors are reportedly disgruntled with the lack of Layer 2 scaling when the DEX releases v3 on May 5.

Theta, which recently climbed to the top ten cryptocurrency standing, got hit hard by the market crash with a 14% decline.

Finally, other tokens that took part in the widespread market decline include Polkadot (DOT) (-17%), Ripple (XRP) (-10%), Bitcoin Cash (BCH) (-9%), and Litecoin (LTC) (-9%).

BTCUSD – 4-Hour Chart

Key BTC Levels to Watch — March 25
Following its inability to scale the $56,700 resistance, Bitcoin went into a bearish spiral that sent it below the crucial $52,500 support (like we predicted in a previous analysis). The primary cryptocurrency appears to have found some support at the $51,400 pivot zone and has rebounded slightly from the $52,500 area.

That said, BTC stands a risk of falling, once again, into the $51,400 – $48,500 pivot zone, except it can claw its way back above the $54k round figure in the coming hours.

Meanwhile, our resistance levels are at $53,000, $54,000, and $55,000, and our key support levels are at $52,000, $51,400, and $50,500

Total Market Capitalization: $1.64 trillion

Bitcoin Market Capitalization: $981 billion

Bitcoin Dominance: 59.8%

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.