The Crypto market tends to see price dips during the weekends and as we approach another one, the market volatility has started to show signs of sell-off again. The crypto market cap dipped below $1.4 trillion as Bitcoin and major altcoins traded in red with a small glimpse of green.
The market experts believe there are numerous reasons for the regular weekend sell-offs pattern that includes the absence of banking facilities which limit traders from adding more cash to their account and as a result low trading volumes on weekends. The low trading volumes often create selling pressure but are followed by a rebound on late Sunday as Asian markets open up.
Margin trading on weekends is also one of the key reasons behind the market price swings where traders borrow money from exchanges to trade at high leverages. If the price of the crypto asset falls below the margin call, exchanges have to sell the crypto assets of traders who fail to repay the loan. This put additional selling pressure leading to weekend volatility.
As we approach another weekend, the dominant bearish sentiments indicate another weekend crash on the cards. It is to be seen whether Bitcoin and major altcoins manage to hold onto their key support levels or perish to the market sell-off.
Crypto Market Lost $120 Billion in Two Days
The crypto market lost a combined total of $120 billion over the past two days as sell-offs continued among investors. Bitcoin’s (BTC) price fell below $33K support and currently trading at $32,689 trying to gain back the key support.
During our last bull run, there were multiple instances where BTC Dom spiked for some relief on its way down. I still fully expect new ATL on BTC Dom before this bull run is over. Eyes on alts if/when BTC Dom hits 50-55%. That will probs be the BEST time to load up on alts. $BTC https://t.co/lAwyOSnNjD pic.twitter.com/RsfpHqEFPO
— CrediBULL Crypto (@CredibleCrypto) July 8, 2021
The top cryptocurrency managed to breach key resistance of $36K last weekend but failed to solidify its position and slipped under $35K soon after.
Ethererum (ETH), the second-largest cryptocurrency started the week on a high registering a new weekly high above $2,400. However, the second-largest cryptocurrency fell below $2,100 briefly and now on the verge of retesting the $2,000 key support level. The weekend might get bloodier for the altcoin as it faces robust seller congestion between $2,182 and $2,243.
Apart from the top two cryptocurrencies, major altcoins such as Litecoin (LTC), XRP, Cardano (ADA), Solana (SOL) have all been trading in red and the loss is believed to widen further as we approach the weekend.
Dogecoin (DOGE), the meme currency and Elon Musk’s favorite had quite a turnaround over the past hour where it turned from worst performing altcoin in the top-10 to the best performing one. The trend reversal was inspired by Musk’s promotion for the meme currency as more efficient than Bitcoin and Ethereum.
Over the past 24 hours, Ethereum has lost 3.47%, Cardano is down by 2.88%, Ripple price fell by 1.5%, Binance Coin registered a 2% decline while Dogecoin has gained 6%.