Bitcoin is leading today’s sales, with declines of up to 20%. In the last 48 hours, Bitcoin’s price has fallen more than 20% from its record highs on Sunday afternoon, back to the $45,000 level first seen on February 8th, when Tesla announced its investment in BTC for $1.5 billion.
This drop in the last few hours cancels out the euphoric rise that characterized the last 10 days. Bitcoin is dragging the whole sector down and, in fact, of all the top 100 cryptocurrencies by market cap only two are in the green. Solana is bucking the trend, rising 40% and Kusama is up 13%. These are two projects offering interoperability services between the various blockchains.
Outside of the top 100, Pteria also went against the trend, rising 45% in the last 24 hours to $40.
Among the big players, EOS was the worst performer, dropping more than 20% to below $4, after having risen more than $5.50 in the past few days.
Bitcoin sell off and volumes increase
As a result of these declines, volumes go up and for the first time, they exceed the trillion dollars traded in the last 24 hours, a rise of 30%. This is an absolute record of trades on a single day. Bitcoin, on the other hand, traded $22 billion yesterday, the second-highest total for BTC in its entire history. Ethereum also saw $11 billion yesterday, the third-highest trading day in ETH history.
As for the market cap, this is back to $1400 billion, with BTC returning below $900 billion after 14 days of record highs. In terms of dominance, Bitcoin remains above 62%, strengthening in the last 24 hours, while Ethereum falls below 12%, its lowest level since January 3rd.
Decentralized finance projects are not under any particular strain as far as locked tokens are concerned, which remain at their highest levels since February, even if the value of collateralized tokens falls in dollars to $34 billion, the lowest level in February: last Friday, in fact, the TVL had recorded records exceeding 41.8 billion dollars for the first time.
The leading project remains Maker, but Compound’s TVL rises to second place with Aave dropping to fourth, although the difference between Aave and Compound is less than $250bn.
Technical analysis of Bitcoin
The fall of these hours breaks the dynamic support in the $48,500 area but this movement nevertheless sees prices return to test this area, former dynamic support that had become resistance.
It will be important to watch the movements of the rest of the day to see if short term buying returns. Currently, however, the situation is delicate also because volumes are decidedly high. Just over halfway through the day Bitcoin traded $18 billion, well above yesterday’s average.
The price of ETH slipped below $1400 for the first time since February 2nd and tested dynamic support in the $1380 area. This is a crucial level for Ethereum in the medium term as the short-term trend, with the break of $1650, has reversed.
At the moment, ETH’s medium to long term structure remains intact, but it is necessary to build a support base from which to restart.