Crypto Market Turns Red: Bitcoin Struggles at $42K (Market Watch)

After failing to overcome $43,000 on a few occasions since yesterday, bitcoin continues to struggle around its January 2021 ATH at $42,000. The alternative coins are also in the red today, with some more notable price dips from Ripple, Avalanche, and MATIC.

Bitcoin Down to $42K Again

Back on February 10th, bitcoin initiated an impressive leg up that resulted in charting a new five-week high of just under $46,000. This came after the enhanced volatility caused by the US inflation rate news, which saw a new 40-year peak of 7.5%.

However, while the bulls were preparing for another offensive, the bears came to play and turned the trajectory upside down. In a matter of hours, BTC dropped by about $3,000.

The cryptocurrency bounced off and tapped $44,000 but turned out to be a false breakout. BTC went straight south again and dipped below $42,000 for the first time in a week.

As of now, the asset stands just over that line, which is where the 50-MA is situated. Its market capitalization stands at around $800 billion as a result.

BTCUSD. Source: TradingView

Altcoins See Red

The alternative coins registered significant gains last week, but most are in the red today. Ethereum traded above $3,200 on Thursday, but it’s down below $2,900 as of now, following another 2% decline since yesterday.

Binance Coin has lost a similar percentage and struggles beneath $400. Ripple, which was the most significant gainer yesterday, has lost more than 5% and is now below $0.8.

Cardano, Solana, Terra, Polkadot, Avalanche, CRO, and MATIC have also seen some losses on a daily scale. Further price declines come from Helium (-12%), Oasis Network (-11%), Quant (-9%), Flow (-8%) are others.

The cryptocurrency market capitalization is down by around $40 billion in a day and over $100 billion since Friday to under $1.9 trillion.

Cryptocurrency Market Overview. Source: Quantify Crypto