The global cryptocurrency market has just undergone a slight correction with a capitalization drop of over 1% in the past 24 hours.
Bitcoin and Ethereum, along with many other altcoins, have all dropped in price as investors reduce risk ahead of the important speech by the Federal Reserve Chairman. The influx of Bitcoin into exchanges has increased sharply, indicating that profit-taking may occur.
MAIN CONTENT
The cryptocurrency market capitalization has dropped to $3.82 trillion, with Bitcoin facing strong selling pressure.
Altcoins are under pressure to decrease in price, with Cardano losing nearly 6% in one day.
Bitcoin failed to test the resistance level of $116.8 thousand, warning of potential short-term declines.
What is the current trend of the cryptocurrency market?
The global cryptocurrency market has slightly decreased, with capitalization dropping to around $3.82 trillion, down 1.03% in the past 24 hours. Bitcoin is trading around $113,602, down 1.15%, while Ethereum fell 1.43% to $4,156 but is still up over 10% for the week.
This correction occurs against the backdrop of traders reducing risk ahead of the Federal Reserve Chairman's speech at the Jackson Hole conference on August 23. On-chain data shows that nearly 12,000 Bitcoins were transferred to exchanges, indicating profit-taking activity after a recent price peak.
How are altcoins affected by this price drop?
Many large altcoins also faced downward pressure following the overall trend. XRP fell by 3.28% to $2.89, Solana lost 1.45% approaching $180.81, while Dogecoin decreased by 1.81 to $0.21.
Cardano experienced the most significant loss with a drop of nearly 6% to $0.84, while Stellar and Sui also lost over 1.5% in value. This is one of the notable deep drop sessions in the top 10 coins.
Can Bitcoin break the resistance level of $116.8 thousand?
Expert Michaël van de Poppe believes Bitcoin has been unable to break the resistance level of $116.8 thousand. He notes that while the market is strong, BTC rejected the first test and may decline further in the short term.
"Bitcoin has failed to surpass the resistance level of $116.8 thousand, signaling the possibility of lower prices in the near future."
Michaël van de Poppe, Cryptocurrency Analyst, 2024
Could this be a buying opportunity when the market corrects?
Despite the price adjustment, van de Poppe believes this is an opportunity to accumulate assets. Especially Ethereum is entering an attractive price range for long-term investors. Altcoins like Chainlink, which were previously seen as cheap at around $6, could also be a reasonable buying opportunity.
"Even during price drops, this is still an opportune time for long-term investors to accumulate Ethereum and some potential altcoins."
Michaël van de Poppe, Cryptocurrency Analyst, 2024
Frequently Asked Questions
How does the cryptocurrency market drop affect investors?
A price drop gives investors the opportunity to buy at lower prices, but it also increases short-term risk if deeper corrections occur. Careful analysis and risk management are essential.
Why is Bitcoin being transferred to exchanges when the price is rising?
This is often a sign that whales or large investors are preparing to sell to take profits when prices peak, creating selling pressure for the market.
Does the price drop of Ethereum still have long-term potential?
Ethereum is still highly regarded for its technological development potential and the growth of the DApp ecosystem, making it suitable for long-term accumulation when prices reach attractive levels.
Which altcoins should be monitored during this correction?
Cardano, Chainlink, and Stellar are notable altcoins due to high volatility, as well as having recovery potential if the overall market grows.
What should you do when the cryptocurrency market is highly volatile?
Protect your portfolio, apply risk management strategies, and seek reasonable asset accumulation opportunities following light corrections.
Source: https://tintucbitcoin.com/xrp-duoi-3-usd-bitcoin-ethereum-nguy-hiem/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
