Over the past weekend, bitcoin (BTC) and the broader crypto market saw a brutal sell-off with bitcoin down nearly 10% in the broader crypto market. In the past three days, the broader crypto market has destroyed $250 billion worth of investors’ wealth.
Bitcoin (BTC), the world’s largest cryptocurrency, has fallen below $33,500 as of the end of last week. The Twitter handle Blockchain Backer says that further selling could be set off by bitcoin losing its crucial support of the 100-day moving average (DMA). crypto analyst telling,
“Bitcoin closes the week below the 100-week moving average. Both previous times led to capitulation to the 200-week moving average in 2014 and 2018. Today’s chart shows several differences from those two times, and They were twice as similar to each other. Big dive in yesterday!”
On-chain data provider Sentiment further suggests that trader sentiment has turned negative once again. it states,with #bitcoin Now after retreating all the way to $33.9k, trader sentiment has declined to a six-week low. We generally like to see capitulation signals like this, because leaving the weak hand in place is usually all that’s needed for a really remarkable bounce”.
With today’s correction, the price of BTC is down almost 30% year-on-year.
Altcoin Market Sell-off, LUNA Crash
Ethereum (ETH) continues to closely follow Bitcoin and the price of ETH has now dropped from lows of $2,500 to its 2022 lows of $2,200.
Over the past week, Terra faced a major price correction with the price of LUNA tanking 20% in a single day amid a major selloff for its UST stablecoin. A D-pegged concerns appeared as the price of the UST stablecoin was pushed below $1.0. As crypto analyst Colin Wu explains: “Luna’s circulating supply increased by 957,201 in one day to reach 91.357 million, setting a new record for Luna’s circulating supply in a single day since April 8”.
The Luna Foundation is reportedly working on measures to protect the UST peg of bitcoin.
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