BTC, ETH Prices Under Pressure as Altcoins Reel
Bitcoin (BTC) briefly fell below $100,000 as a wave of sell-offs affected the broader cryptocurrency market, contributing to a decline of more than 20% from its all-time high of $126,000 set in October. Over $1.7 billion in crypto positions were liquidated, with long positions facing the largest losses. Factors exacerbating the situation include a hawkish tone from the Federal Reserve and a broader market risk-off sentiment. BTC is now testing crucial support lines, particularly the 50-week moving average just below $103,000. Meanwhile, the Crypto Fear and Greed Index indicates a sentiment shift towards fear. Analysts suggest that unless BTC and Ethereum (ETH) can maintain support levels of $99,000 and $3,100 respectively, the altcoin market could see further declines due to limited liquidity and high leverage. Additionally, the altcoin market is currently described as oversold, with potential for a short-term relief rally, although significant corrections are anticipated if major cryptocurrencies continue to drop. Mixed signals are being observed in the futures and options markets, indicating increased caution among traders, which may result in volatile market conditions moving forward.
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