Crypto market sell-off likely to extend further as BTC tumbles
- Bitcoin, Ethereum, Dogecoin, Cardano and other altcoins are down more than 5% in the past week.
- The daily exchange volume has declined from $100 billion to $57 billion in roughly three weeks.
- Bitcoin’s sell signals are forecasting a steep correction, which could add fuel to the fire.
Bitcoin’s (BTC) descent has caused the crypto market to take a beating. Altcoins’ prices, specifically, are facing the weight of selling pressure and are down by double-digits in the past 24-hours. This trend is likely to continue unless BTC finds a stable ground to bounce.
Also read: US Dollar strength could be one of the reasons why Bitcoin could crash more
Crypto markets turn bleak
A quick look at the top cryptocurrencies on CoinGecko shows that their returns in the past day and week are in red. Bitcoin, Ethereum (ETH), Ripple (XRP) prices are down nearly 5% to 7%. Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX) prices, however, are drowning in red with doble-digit losses in the past day.
Crypto performance
This outlook signifies that the bull market sentiment is dying down, or at least taking a break. According to TheBlock’s data, the 7-day average of the daily exchange volume shows that it has dropped nearly 43% from $100 billion on March 10 to $57 billion on Thursday.
Crypto daily exchange volume 7-day average
Bitcoin signals a descent
Bitcoin’s sell signal – as outlined in FXStreet’s previous publications – has been confirmed, which forecasts a potential correction. Additionally, BTC’s inability to produce a weekly candlestick close above the previous all-time high of $69,138 suggests that a short-term downtrend is on the cards.
Also read: Bitcoin Weekly Forecast: BTC looks set for correction amid increasing sell signals
Further reading on a potential Bitcoin price correction:
- Comparison of monthly and weekly BTC price action to determine potential buy-the-dip levels - Read more.
- Bitcoin’s dead cat bounce scenario - Read more.
- Bitcoin’s potential rally to $75,000 or $80,000 - Read more.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
