Daily Crypto Signals: Bitcoin Recovers from $76K Low as XRP Whales Continue Selling Spree
Market volatility intensifies as Bitcoin hits four-month low while XRP distribution phase accelerates amid broader crypto selloff. Bitcoin’s correction may be reaching its bottom despite ongoing pressure on altcoins, with Ethereum potentially finding support at $1,800 level.
Crypto Market Developments
This week the market for cryptocurrencies was under great pressure as Bitcoin fell to a four-month low of $76,700 in response to increasing macroeconomic uncertainty. The S&P 500 index’s 6% weekly dip reflects investor worries about world economic stability and possible trade conflicts started by US import tax concerns, thereby matching the larger market fall.
Though there is a gloomy attitude, some analysts believe that the decline of Bitcoin could be almost finished. Unlike past bear markets, the current correction hasn’t reached the usual 40% drop that defines real bear cycles; the US dollar index (DXY) has been weakening rather than strengthening; derivatives markets remain stable; early signals of a real estate crisis could hasten capital flows to limited assets like Bitcoin. Four main indicators point to a possible bottom.
European Union authorities are allegedly looking at Bitcoin exchange OKX for its possible influence in laundering about $100 million in money from the Bybit hack. Denying these claims, OKX says there are no current EU investigations and that Bybit’s comments “are spreading misinformation.”
Bitwise has debuted a Bitcoin corporate treasury ETF ( OWNB) in institutional news tracking corporations with at least 1,000 Bitcoin in their treasuries. Among the ETF’s biggest holdings include investment manager Galaxy Digital, MicroStrategy, Bitcoin miners including MARA Holdings and CleanSpark.
Bitcoin’s Correction Sees Test of $76,000 Support
Correcting Bitcoin BTC/USD pushed prices down on March 11 to $76,700, a 30% decline from its all-time high of $109,350. On whether this marks a bear market or just a correction inside a continuing bull cycle, analysts disagree, though.
With a 41% collapse from $69,000 to $40,560 in just 60 days, the present price action is very different from the November 2021 catastrophe. Under a similar situation today, by the end of March the value would drop to $64,400.
Furthermore, despite the price decline, the annualized premium on futures shows at 4.5%, therefore the markets for Bitcoin derivatives remain rather strong. This contrasts with June 2022, when the indicator dropped sharply and dropped below 0%.
Traders also keep an eye on the possible US government shutdown on March 15 since legislators have to approve a measure increasing the debt limit. A good outcome might set off a relief surge in risk-on assets, including Bitcoin.
Ethereum Trades Near 3-Month Lows
Having dropped more than 53% after reaching above $4,101 in December 2024, Ethereum ETH/USD is still suffering with an almost three-month declining trend. Bitfinex analysts blame a lack of building activity on the Ethereum network and worldwide anxiety over US import tariffs for the dismal performance.
“Most likely the main cause of ETH’s poor performance is a lack of new projects or builders migrating to ETH, mostly owing to expensive running costs. Bitfinex analysts said that for ETH, $1,800 will be a good level to monitor.
Further complicating Ethereum’s situation, US spot Ether ETFs have had net negative outflows for four straight weeks, with over $119 million departing the funds last week. The possible price recovery of the asset is being limited by this ongoing selling pressure.
With Yuga Labs’ vice president saying Ether may drop as low as $200 in a protracted bear market—a 90% decrease from present levels—some market players remain noticeably negative. Other analysts counter that without a systemic collapse, institutional acceptance and ecosystem maturity make such severe situations less feasible.
XRP Bounces Back Above Critical $2 Level
XRP XRP/USD struggles greatly as it achieved its lowest daily candle close in 99 days on March 10, falling below the vital $2 support level before only showing a meager 12% recovery on March 11. XRP is down 37.1% from its all-time high of $3.40, trading now at $2.20.
Three main variables point to XRP perhaps declining much more to about $1.60:
- Declining spot and constant cumulative volume delta (CVD) suggests declining demand and sellers seizing control. For spot markets the current CVD value is -$408 million; for perpetual futures it is -1.18 billion.
- Between March 4 and March 10, XRP whales are dumping around $838 million worth of assets, hence escalating the distribution phase and their selling frenzy.
- With targets between the Fibonacci retraced levels of $1.90 and $1.60, a head-and-shoulders pattern on the daily chart signals possible more downside should XRP fail to retake $2.05 as support.
Dogecoin Bounces Over 10% Higher
Having dropped over 8% in the past 24 hours to trade at roughly $0.165, Dogecoin DOGE/USD is lagging other major cryptocurrencies. Between March 3 and March 11, the top memecoin dropped 41% of its value; its lowest price in four months at $0.142.
With Shiba Inu down 7%, Ethereum-based Pepe down 8%, and Solana-based SPX6900 down 28% over the same period, this slump reflects general panic across the memecoin sector. Memecoins’ collective market valuation dropped 7.5% during the past 24 hours, taking off $4.54 billion from the market.
Derivatives data indicates that, compared to $4.4 million in short liquidations, nearly $23.1 million worth of long DOGE contracts have been sold in the past 24 hours only. Along with the 41% price decrease, long DOGE holdings totaling $161 million have been liquidated since February 24.
While the funding rate has turned negative at -0.0077%, implying short sellers are now in control of the market, dogecoin’s open interest has dropped by 37% in the past seven days, indicating declining trader engagement.
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