Bitcoin
slipped and other cryptocurrencies were mixed on Monday after a dramatic selloff late last week that plunged digital assets through key technical levels that could pave the way for even further declines.
The price of Bitcoin has fallen less than 1% over the past 24 hours to $26,050, stabilizing around the $26,000 mark after last week’s drop took the largest crypto to as low as around $25,500 from $29,000.
“The market is still above the previous local lows of June, giving hope for a continued uptrend. However, it is worrying that July’s highs are lower than April’s,” said Alex Kuptsikevich, an analyst at broker FxPro. “Bitcoin closed the week with a notable drop below its 200-week and 200-day moving averages, signaling a shift to a bearish trend.”
The selloff that hit Bitcoin marked a seismic shift in crypto markets, which up until last week were in a period of historically stagnant trading. After weeks of lagging excitement in the stock market—where the
Dow Jones Industrial Average
and
S&P 500
have been volatile—Bitcoin swung into action late last week in a drop that shocked markets and had traders looking to lay blame.
With cryptos holding below key technical levels, analysts are eyeing Bitcoin as vulnerable for further declines.
“The decline has taken it below short-term support and its 200-day moving average … putting next and more important support near $25,200 in reach,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. “The setup supports a breach of $25,200, which would further increase downside risk for Bitcoin. Secondary support is roughly $20,600.”
Beyond Bitcoin,
Ether
gained less than 1% to $1,675, though the second-largest token has seen similar declines to Bitcoin in recent days. Smaller cryptos, or altcoins, were mixed, with
Cardano
up less than 1% by
Polygon
slipping less than 1%. Memecoins were more firmly in the red, with
Dogecoin
down 2% and
Shiba Inu
shedding 3%.
Write to Jack Denton at jack.denton@barrons.com
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