Crypto Market Meltdown: Bitcoin Dives, Altcoins Crumble

Bitcoin and the crypto market experienced a downturn today. Bitcoin fell by 9.45% to $32,264.6, after reaching an early morning high of $35,832.0. Other cryptocurrencies also faced significant losses, including Bitcoin Cash SV (-16.52%), Chainlink (-16.75%), Binance Coin (-11.59%), Cardano's ADA (-10.97%), Ethereum (-14.27%), Litecoin (-15.54%), and Ripple's XRP (-14.70%). The broader crypto market's total value decreased to $1,310bn.

Crypto Market Suffers Bearish Start: Bitcoin Plunges, Altcoins Crumble

Bitcoin and the broader cryptocurrency market have endured a dismal start to the week, marked by a sharp selloff that has sent prices tumbling.

Bitcoin's Descent

Bitcoin, the flagship cryptocurrency, opened the day in the red, extending last week's 8.64% loss. As of the time of writing, BTC/USD has plummeted by 9.45% to $32,264.6, erasing all gains made in recent days.

The morning started with a glimmer of hope as Bitcoin surged to an intraday high of $35,832.0. However, the rally was short-lived, as the cryptocurrency quickly reversed course and slid to an intraday low of $32,158.0.

Bitcoin has breached two key support levels at $33,953 and $32,274, indicating a continuation of the sell-off. Despite briefly recovering above the second support level to reach $32,600, Bitcoin has since retreated back down.

Broad Market Woes

The bearish sentiment has spread throughout the rest of the cryptocurrency market, with all major cryptocurrencies experiencing losses. Bitcoin Cash SV (-16.52%) and Chainlink (-16.75%) have suffered the most significant declines.

Other notable losses include Binance Coin (-11.59%), Cardano's ADA (-10.97%), Ethereum (-14.27%), Litecoin (-15.54%), and Ripple's XRP (-14.70%).

Cryptototal Market Cap Collapse

The overall cryptocurrency market capitalization has plummeted, falling from an early morning high of $1,482 billion to a low of $1,302 billion. As of the time of writing, the total market cap stands at $1,310 billion.

Bitcoin's Dominance

Bitcoin's market dominance has also declined, dropping to an early low of 45.20% before recovering to 46.12%. Currently, Bitcoin's dominance is at 46.06%.

Technical Analysis

The 50 Exponential Moving Average (EMA) has pulled further away from the 100 and 200 EMAs, signaling a potential continuation of the sell-off. Furthermore, the 100 EMA has retreated from the 200 EMA, adding further downward pressure.

A further decline in the 50 EMA below the 100 EMA would likely lead to a test of levels below $31,000.

Outlook for the Day

For Bitcoin to recover, it needs to break back through major support levels and the $35,090 pivot point while seeking support from the broader market. However, resistance at $36,768 and Sunday's high of $36,226.4 may limit any upside potential.

Failure to hold above key support levels could result in a further decline towards levels below $32,000. However, a sell-off below the third major support level at $29,459 is unlikely in the absence of a prolonged downturn.

In conclusion, the cryptocurrency market is experiencing a significant correction, with Bitcoin leading the decline. Altcoins have also suffered heavy losses, and the overall market sentiment remains bearish. Whether Bitcoin can recover in the short term remains to be seen, but technical indicators suggest a continuation of the sell-off is possible.