You will not have missed it; the market is turning red today. Bitcoin (BTC) has fallen by $ 50,000 and altcoins are also declining significantly at the moment. Still, we also saw a little bounce today, but is this the bottom of this correction right away?
Bitcoin (BTC) is slipping down and falling below $ 50,000
The news that US President Joe Biden is likely to present a new tax plan next week hit a bit like a bombshell. He probably wants to increase the capital gains tax in the United States considerably.
Due to the panic, the bitcoin price has fallen by almost 14% in value since last night. At the time of writing, the correction bottomed out at $ 47,500 on crypto exchange Coinbase. In the course of today, bitcoin rose slightly back from this region.
However, at $ 50,000, BTC was forced to shut down and it did not return to a recovery above this psychological limit. Should that still succeed in the coming hours, the next possible resistance zone will be at USD 51,600, USD 54,000 and USD 56,000.
The big question of course remains whether the bottom has already been reached. From its current all-time high (ATH) just below $ 64,500, BTC has already declined 26% in value. In the longer term, this correction can be called healthy. On the weekly chart, the Relative Strength Index (RSI) was in fact deep in the overbought territory for a long time, which is a sign that the market was overheating.
However, a further correction could still be in the offing, especially given the corrections we have seen in the past of sometimes more than 30%.
Altcoins fall by more than 10%
As mentioned, the blows were not only with bitcoin. For example, ethereum (ETH) is down 11.4% in value compared to 24 hours ago, Binance coin (BNB) with 12.7% and ripple (XRP) with 17.6%. The biggest dropper of the top 10 is dogecoin (DOGE). The now number 7 is 17.8% in the red.
The altcoins are losing ground on bitcoin again. The bitcoin dominance is still dangling at 50% and is now at 50.7%. The total market capitalization fell by 11.5% over the past 24 hours. All cryptocurrencies together are worth $ 1.8 trillion.