Bitcoin Slumps from 11-Week High as Crypto Market Goes Into Correction
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After peaking at a new 11-week high at $42,600 on Sunday, Bitcoin (BTC) appears to be in a sharp correction mode as the cryptocurrency falls to the mid-38k area. As expected, the rest of the crypto market acted similarly, which dragged the valuation of the total crypto market lower. The benchmark cryptocurrency now trades down by -9% from its recent high.
Nonetheless, BTC is up by over $9k from its recent monthly low at $29.3k, while on-chain metrics maintain that the cryptocurrency’s long-term projections are bullish. Also, the developer of the Stock-to-Flow (S2F) model, PlanB, asserts that the primary cryptocurrency performed “like clockwork” after it dropped below the $30k line.
Meanwhile, altcoins also partook in the boom and posted multi-record highs over the past few weeks. Ethereum (ETH) peaked at $2.7k on Sunday but has since dropped by $225.
Binance Coin (BNB) recorded a three-week high at $347.75 on Sunday before dropping to the $320 area as the market bleeds.
Other large-cap cryptos, including Cardano (ADA), Ripple (XRP), Dogecoin (DOGE), Polkadot (DOT), and Uniswap (UNI) all trade down with -2%, -4%, -3.6%, -5.3%, and -4.8%, respectively. That said, the total market valuation has plunged by over $146 billion over the past 24 hours due to the correction.
Key Bitcoin Levels to Watch — August 3
Following its recent sharp decline, Bitcoin appears to have rebounded off the support level around the $38.5k level, as bulls struggle to keep the market afloat.
With trading sentiments starting to turn bearish, BTC needs a push to the $39.8k level in the coming hours. Failure to secure this push could send the primary cryptocurrency on a bearish continuation.
Meanwhile, our resistance levels are at $39,500, $40,500, and $41,000, and our key support levels are at $37,500, $37,000, and $36,000.
Total Market Capitalization: $1.57 trillion
Bitcoin Market Capitalization: $724.8 billion
Bitcoin Dominance: 46.2%
Market Rank: #1
