Yigit Taha OZTURK 
The cryptocurrency market has been highly volatile in recent days. Significant drops in major cryptocurrencies like Bitcoin and Ethereum have heavily impacted the altcoin market. But what are the reasons behind this decline? Is a recovery possible for altcoins? Let’s dive into the details.
Sharp Declines in Bitcoin and Ethereum
Bitcoin recently plunged from $105,000 to $98,000, marking a 6.6% drop. Similarly, Ethereum fell from $3,300 to $3,050, experiencing a 7.5% loss.
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In yesterday’s analysis, we pointed out that Bitcoin broke its minor trend downward and might see a pullback movement. As expected, this forecast aligned with the market’s actions. Currently, for Bitcoin, the critical levels are:
- Resistance levels: $101,800 and $103,600
- Support levels: $99,200 and $95,400
These levels offer significant insight into Bitcoin’s short-term direction. Any slight upward movement during the day is expected to remain a pullback within the minor trend.
Total3 and Altcoin Market Declines
The shared chart compares Bitcoin’s price movement with the Total3 index, which represents the market cap of all altcoins except Bitcoin and Ethereum. As seen, while Bitcoin dropped 3.03%, the Total3 index experienced a steeper decline of 6.44%.
This demonstrates how altcoins, due to their high volatility and lower liquidity, face greater selling pressure during market downturns.
If Bitcoin holds its current levels, it may provide hope for an altcoin recovery. However, the Total3 index sends a bearish signal about the market’s overall health.
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