In the last couple of hours, the market has changed its trend. Most top coins have seen a slip-up and while some are worse than others, the general sentiment for all is desperation. After holding on for nearly a week, it seems investors have begun losing patience with the market and have allowed the bears back in.
Yesterday, several cryptocurrencies including Bitcoin attempted to rally and break out of their resistance position, and its failure has seen the market pullback today. With desperation building up, the question is, where does the market find support?
For Bitcoin, at the time of press, the leader is desperately holding on to the $4,000 position, with a slip below this, a sign of weakness and a potential to trigger a sell-off. For ETH, the coin has incurred much greater damage slipping from yesterday’s highs of nearly $141 to a little under $137 at the time of press.
This drop sees ETH go back to its previously established price range of $133-$138. XRP has also pulled back to just a little over $0.31 after hitting a high of $0.32 yesterday. Around the market, most coins have dropped by about 1% to 5%, seeing the total market cap drop below $140 billion.
Could The Bears Be Preparing For A Take over?
This recent pullback comes in response to yesterdays failed attempt however as BTC’s dominance suggests, investors will have to be careful not to lose the market to the bears during this dip. After remaining for days under 51%, BTC’s dominance has managed to get back to 51%. This means investors have begun abandoning altcoins and are getting back to the more presumed safer Bitcoin.
Bitcoin is presumed to have the lowest volatility, making it the ideal cryptocurrency to hold when the market is looking highly unpredictable. However, during a rally or in the potential of it, investors choose to hold altcoins, which due to their high volatility, hold the power to rally much higher and rapidly than Bitcoin.
In the next couple of hours, we should expect the market to find support and then we can see if there will be any kind of response from the bulls. Sometimes, a pull-ack isn’t the worst thing as it can come right before a hugely positive move. Whether positive or negative, the next couple of hours remain crucial to short-term predictions.
