Bitcoin Hits Resistance at $71K, Bitcoin Cash Defies Market Drop

Bitcoin, following a brief 10% surge above $71,000, has succumbed to bearish pressure, falling below the $70,000 threshold. In contrast, Bitcoin Cash (BCH) has defied market sentiment, soaring by 37% during the past week, buoyed by anticipation surrounding its imminent halving. Ethereum, BNB, and XRP are among the larger-cap altcoins witnessing losses, while Shiba Inu and Uniswap have experienced significant declines of 6-7%.

Bitcoin Faces Resistance at $71K, While Bitcoin Cash Defies Market Downtrend

In a tumultuous week for the cryptocurrency market, Bitcoin's parabolic ascent has encountered a pivotal barrier at $71,000, leading to a sharp reversal. Despite the overall bearish sentiment, Bitcoin Cash (BCH) has emerged as an outlier, defying the market's negative trajectory with an impressive surge.

Bitcoin Stumbles at $71K

Last week began with a promising upswing for Bitcoin, as its value soared by thousands of dollars. However, the bears swiftly halted its upward momentum at the $72,000 mark on Wednesday, forcing it to retreat back below $68,000. A subsequent bullish attempt was also met with resistance, with another rejection occurring just shy of $72,000.

Over the weekend, Bitcoin's price action remained relatively muted, oscillating within a narrow range between $70,000 and $71,000. However, an attempt to break above the latter threshold early this morning was met with a decisive rejection, sending BTC tumbling below $70,000 once more.

Market Capitalization and Dominance

Bitcoin's market capitalization, once hovering near $1.4 trillion, has now slipped further away from this milestone. Its dominance over the rest of the cryptocurrency market remains steady at 49.5% on CoinGecko.

BCH Soars on Halving Hype

Amidst the broader market downturn, Bitcoin Cash has emerged as a beacon of resilience. Driven by anticipation surrounding its upcoming halving event, which is expected to take place tomorrow, BCH has experienced a remarkable 37% surge over the past week. In the last 24 hours alone, its value has climbed by more than 13%, with the asset now trading above $660.

Other Altcoins Follow Mixed Fortunes

A select few other altcoins, including APT, ICP, TON, and LTC, have also posted modest gains. In contrast, most of the larger-cap altcoins have fallen into the red. Ethereum (ETH) has lost over 2% of its value in the past day, hovering below $3,500. BNB, XRP, DOGE, ADA, AVAX, DOT, and LINK have all declined by between 3-4% over the same period.

The most severe losses have been incurred by Shiba Inu (SHIB) and Uniswap (UNI), which have both plunged by 6-7%.

Total Market Cap Dips

The overall cryptocurrency market capitalization has shed approximately $40 billion over the past day, with the total now standing at $2.760 trillion on CoinGecko.

Market Outlook

As the cryptocurrency market grapples with the ongoing volatility, Bitcoin's inability to break above $71,000 suggests a potential consolidation or correction in the near term. However, the market's reaction to Bitcoin Cash's halving event may provide further insights into the industry's overall sentiment.