Bitcoin has started the week posting major losses. At press time, the largest cryptocurrency by market cap is trading at $35,458.31 (-13.48%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $1,106.15 (-17.23%), while XRP has dropped by 17.56% and is now trading at $0.29.
FxPro's team of analysts say:
"The end of the New Year's vacations has brought with it a deep correction to the crypto market. Bitcoin has become the protagonist of this process. Over the past 24 hours, the reference cryptocurrency has lost more than 15% and at the beginning of the workweek it is trading at around $34,000. As a result, in a matter of days the coin has posted a decrease of $8,000 from its all-time high of $42,000.
The main question that currently concerns all participants in the cryptocurrency market is the kind of correction we are currently seeing. There is no doubt this decline was inevitable after such an explosive growth. However, the composition of investors who are withdrawing their profits is relevant. One thing is that the wave of profit taking is made up of small and medium sized retail investors, but it would be very different if the current correction were caused by large funds, which have been the big winners of the Bitcoin rally in recent months. During the next few days an analysis will be made of the composition of those who are selling their assets, and for now, the most important thing will be to determine the stopping point of the correction, where technical indicators can also be used.
The greed and fear index for Bitcoin and the largest cryptos is still in the 'extreme greed' area, so a further decline towards the lower limit of $30,000 could lead the indicator to less extreme values. On the other hand, the RSI is showing a significant drop from the overbought area, which perfectly reflects the current situation in the crypto market."
According to CoinMarketCap’s ranking, all currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $955,872,378,367.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.