The digital assets market faced a tough start to the week as Bitcoin (BTC) plummeted from the $100,000 mark to $97,470, triggering a cascade of corrections across most altcoins. CoinGlass, a reliable crypto data aggregator, reported liquidations exceeding $567 million in the past 24 hours, predominantly affecting leveraged long positions in Bitcoin.
Renowned analyst Rekt Capital, with a substantial following on X, highlighted the altcoin correction occurring at a crucial resistance point in the OTHERS chart. This chart monitors the total market cap of digital assets excluding the top 10, serving as a barometer for altcoin strength. Rekt Capital emphasized that the Altcoin Market Cap’s weekly closure above $425 billion, historically a challenging area, could lead to a milder rejection and a shallower retracement.
In a potentially concerning development for altcoins, Rekt Capital also flagged the oversold status of Bitcoin dominance (BTC.D) based on the relative strength index (RSI) on the daily chart. An oversold RSI often precedes a rebound for the asset, indicating potential headwinds for altcoins.
As of the latest update, BTC is trading at $97,546, showcasing the market’s volatile nature and the impact of Bitcoin’s movements on the broader digital assets landscape.
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