Bitcoin and Cryptocurrencies Brace for Another Storm
Bitcoin and other cryptocurrencies experienced a selloff last week, interrupting a period of unusually low volatility. While digital assets have since stabilized, crypto traders are preparing for potential turbulence ahead.
The price of Bitcoin has remained relatively flat in the past 24 hours, hovering around $26,050. However, it briefly dropped near $25,500 during recent trading, revisiting its lowest level since mid-June. Analysts are closely watching Bitcoin and believe it may be susceptible to further declines, particularly as it trades below key technical levels such as its 200-day moving average.
Katie Stoctkon, managing partner at technical research firm Fairlead Strategies, warns that the next support level to watch is around $25,200. If Bitcoin breaks below that level, secondary support stands at approximately $20,600.
Before the recent market downturn, Bitcoin had been experiencing historically low volatility. While volatility has temporarily subsided, traders remain cautious. The crypto derivatives market indicates a surge in careful positioning as implied volatility remains higher than historical volatility—a signal that traders anticipate further choppy waters.
In addition to Bitcoin, Ether—the second-largest cryptocurrency—experienced a slight decline of less than 1% to $1,670. Smaller tokens, known as altcoins, fared worse. Cardano was down 2% and Polygon declined by 4%. Among the memecoins, Dogecoin only dipped less than 1%, while Shiba Inu saw a 2% drop.
It is clear that the crypto market is not yet in a state of calm. Uncertainty remains as investors navigate through these turbulent times.
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