The post Why Crypto is Down Today? Bitcoin Dominance Strengthens Amid Market Selloff appeared first on Coinpedia Fintech News
After a palatable rally registered by most of the large-cap altcoins in the past few days, following the Bitcoin (BTC) price spike above $89k, the crypto market recorded heavy losses in the last 24 hours. As Bitcoin price teased below $85.2k on Tuesday, the total crypto market cap dropped by 3 percent in the last 24 hours to hover about $3.06 trillion on Wednesday, November 13, during the early Asian session.
With the consensus of a macro crypto bull market high, it is prudent for traders to prepare with manageable risk for potential 20-40 percent dips along the way.
Factors that Contributed to Crypto Selloff Today
Leveraged Market Cool-off
The cryptocurrency market has registered more than $2 billion in forced liquidations during the past three days. Amid the heightened crypto volatility, more than $928 million was rekt in the last 24 hours, mostly involving long traders.
As a result, the initial short squeeze has dramatically reduced, with more traders shifting to midterm correction.
On the Binance exchange, more than 51 percent of leveraged traders are short, suggesting low optimism for a further market rally in the coming few days.
Read more about the detailed crypto prediction 2025 and what to expect for Bitcoin and altcoins.
Major Shift from Crowd’s Sentiment
Following the Bitcoin price breakout triggered by the victory of Donald Trump in the United States, the fear of further crypto capitulation has significantly diminished. Bitcoin and Ethereum’s fear and greed index had rallied above 80 percent, suggesting extreme greed in the market.
Moreover, the US spot Bitcoin ETFs have registered more than $8.7 billion in net cash inflows over the last four weeks. Additionally, MicroStrategy recently kickstarted its bid to purchase $42 billion worth of Bitcoins with a $2 billion bid earlier this week.
However, the crypto market often experiences midterm correction every time the crowd gets extremely bullish.
Midterm Expectations
Key support levels for #Bitcoin $BTC to watch:
$83,250 – $85,800
$72,880 – $75,520 pic.twitter.com/kC1sJK9qVn
— Ali (@ali_charts) November 12, 2024
Based on historical trends, Bitcoin’s dominance is expected to remain strong against the altcoin market until the first few weeks of January 2025. In this regard, Bitcoin price is expected to find a crucial support range between $83,250 and $85,800 where 312k addresses purchased 282k BTCs.
Meanwhile, the altcoin market is expected to continue gaining ground following the notable bullish breakout of Dogecoin (DOGE), Solana (SOL), and Ethereum (ETH).
