Bitcoin came close to hitting its lowest point of the week, while altcoins experienced significant declines. The possibility of further large-scale sell-offs looms over the market.
The past weekend saw an unusual atmosphere in the cryptocurrency space, with Bitcoin displaying erratic behavior marked by mostly negative movements. Altcoins faced an even tougher time, with coins like DOGE, APT, and WIF witnessing drops of over 5% in just 24 hours.
The beginning of the trading week seemed promising for Bitcoin as it surged from $67,500 to over $71,500 early on Monday and Tuesday. The momentum continued, briefly touching $73,600 on Tuesday evening, inching closer to a new all-time high. However, the situation quickly reversed, and BTC fell back to $72,000 on Wednesday.
The following days saw further declines, with Bitcoin dropping to $68,800. A brief recovery pushed the price back up to $71,600, only to face another significant setback. The selling pressure intensified, driving the price down to $68,800 on Saturday, ultimately hitting a weekly low below $68,000 early on Sunday.
Bitcoin is currently trading around $68,200, down 2% on the day, with its market cap dropping to approximately $1.35 trillion. Despite the challenges, Bitcoin’s dominance over altcoins has increased to 56.6%, according to the dominance index.
During these turbulent market fluctuations, cryptocurrency analyst DonAlt expressed concerns about the position of Bitcoin bulls. In a recent video, he cautioned his followers about the potential risk of a wave of liquidations if Bitcoin closes the week below $70,000. DonAlt warned that such a scenario could trigger a cascade of sell-offs, potentially driving the price down to the $50,000 range.
“I think there are a lot of people who are essentially in a position where it’s not about owning crypto for the sake of it. They want to own crypto because they believe it will rise due to certain events. I think that’s a risky position to be in,” the analyst stated.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.