Bitcoin and Altcoins Plummet Suddenly: What’s Happening in the Market?

At the time of writing, the price of BTC is trading at $29,365 and closed the day at around $29,400. Investors have been tired of low volatility for almost 2 months. Today is a new Sunday morning and BTC is still struggling to create a straight line on the chart.

Current State of Bitcoin

The king of cryptocurrencies continues its downward trend as it fails to reclaim the levels of $29,500, $29,700, and $29,951. If investors do not see a significant increase in demand in the coming days, the easiest thing for the price will be to go down. However, when the bearish sentiment dominates the market, speculative traders may try to trick others.

We have seen that the recent test at $30,200 turned into a liquidity hunt for sellers. In response to the slight movement in price, sellers transferred a significant amount of BTC to exchanges. This indicates that risk appetite is still not increasing due to various uncertainties. Investors prefer to stay on the sidelines fearing a lawsuit against Binance or a surprise FUD when it opens.

For now, the expectation for BTC is a possible test towards $28,800, $28,300, $27,500, and $26,500 after $28,300. Some experts believe that the price could test $25,000 before the end of the year. If this scenario becomes true, altcoin investors may get very frustrated.

Current State of Cryptocurrencies

The cumulative volume has dropped to $16.1 billion. While BTC’s trading volume remains at $6.1 billion, ETH is around $2.1 billion. These volumes indicate that a significant portion of investors have clearly distanced themselves from the market. Considering the increased market maker deficiency since May, the market is not having good days in terms of volume.

Among the top 100 cryptocurrencies, RUNE, TON, and PEPE emerged as leaders in terms of gains. They experienced weekly increases of 40%, 15%, and 14.92% respectively. RUNE had a positive divergence in the last 24 hours and gained 15%. GMT, MNT, and OP prices, on the other hand, experienced double-digit declines.

There are no surprises for investors on Sunday morning. The markets are still boring and prices continue to trade within a narrow range. However, we must not forget that high volatility periods follow these boring periods.