The crypto market tends to see price drops on weekends these days, and as a new weekend approaches, market volatility is starting to show signs of selling again. While Bitcoin and major altcoins are trading in negative territory, the crypto market cap has dropped below $1.4 trillion.
Market experts believe there are numerous reasons for the regular weekend sales pattern, which includes the absence of banking channels that limit traders from adding more cash to their accounts and the consequent low trading volumes on weekends. Low trading volumes often create selling pressure, but a recovery follows late Sunday as Asian markets open.
Margin trading on the weekends is one of the main reasons behind market price fluctuations, where traders borrow money from exchanges to trade with high leverage. If the price of the crypto-asset falls below the margin call, exchanges are forced to sell crypto-assets to traders who cannot repay the loan. This could be interpreted as additional selling pressure leading to weekend volatility.
As another weekend approaches, the dominant bearish sentiment raises the question of whether there could be another weekend slump. We’ll see if Bitcoin and major altcoins manage to maintain their key support levels or if they take a hit in the market sell-off.
Crypto market lost $120 billion in two days
The crypto market has lost a total of $120 billion over the past two days as sales continue among investors. Bitcoin (BTC) price dropped below the $33,000 support and is currently trading at $32,689 as it tries to regain key support.
During our last bull run, there were multiple instances where BTC Dom spiked for some relief on its way down. I still fully expect new ATL on BTC Dom before this bull run is over. Eyes on alts if/when BTC Dom hits 50-55%. That will probs be the BEST time to load up on alts. $BTC https://t.co/lAwyOSnNjD pic.twitter.com/RsfpHqEFPO
— CrediBULL Crypto (@CredibleCrypto) July 8, 2021
The top coin managed to break the key resistance of $36,000 last weekend, but failed to consolidate its position and soon fell below $35,000.
The largest altcoin Ethereum (ETH) started the week with a new weekly high above $2,400. However, ether briefly dropped below $2,100 and is now on the verge of retesting the key $2,000 support level. Losses could increase over the weekend as the altcoin faces a strong seller congestion between $2,182 and $2,243.
Apart from the two biggest cryptocurrencies, major altcoins like Litecoin (LTC), XRP, Cardano (ADA), Solana (SOL) are all trading in negative territory and the loss is believed to increase further as the weekend approaches.
Elon Musk’s favorite Dogecoin (DOGE) has had a comeback in the past hour, transforming from the worst performing altcoin in the top 10 to the best performing altcoin. The trend reversal was inspired by Musk’s humorous promotion of the cryptocurrency as more efficient than Bitcoin and Ethereum.
In the last 24 hours, Ethereum has lost 3.47%, Cardano is down 2.88%, Ripple price is down 1.5%, Binance Coin is down 2%, and Dogecoin is up 6%.