Crypto Markets Plunge as Spot ETF Sell-Off Triggers Correction

Crypto markets faced a correction triggered by selling pressure from Spot BTC ETFs, with Bitcoin and Ethereum losing 5% and 8% respectively. Weekend relief in supply pressure caused sideways movement, but a sustained downward trend in spot ETFs indicates potential for further BTC correction below $60,000 and increased selling pressure in the broader market.

Cryptocurrency Markets Experience Correction Amidst Spot ETF Sell-Off

The digital asset landscape has faced a significant correction in recent days, triggered by a notable outflow from Spot Bitcoin ETFs. This selling pressure has resulted in a weekly loss of 5% and 8% for Bitcoin (BTC) and Ethereum (ETH), respectively.

Spot ETF Sell-Off Exacerbates Correction

The outflow of over $888 million from 10 Spot BTC ETFs has exacerbated the downward trend in the crypto markets. This selling pressure has created a bearish sentiment, leading to a correction in the prices of major assets.

Major Assets Experience Sideways Momentum

Over the weekend, the supply pressure eased, resulting in uncertain sideways action in the majority of major assets. While this temporary respite has halted the decline, the underlying correction remains a major concern for investors.

Bitcoin Price Vulnerable to Further Decline

Should the upcoming week witness a continuation of the downward trend observed in spot ETFs, the BTC price could extend its correction below $60,000. This would intensify selling pressure throughout the market, potentially leading to further losses.

Bitcoin Technical Analysis

The ongoing correction in Bitcoin has seen the price drop from $73,808 to $65,067 within two weeks. This 11.8% pullback is currently finding support at the 38.2% Fibonacci retracement level, indicating a potential retracement phase for the asset.

Renewed buying interest in BTC ETFs could provide the necessary catalyst for a recovery in the market. A bullish breakout from the overhead trendline would bolster support for a rally to $69,000, followed by $73,800.

Dogecoin and Toncoin Display Relative Strength

Despite the overall market correction, Dogecoin (DOGE) and Toncoin (TON) have shown relative strength. DOGE is currently trading at $0.17, experiencing an intraday gain of 6.5% over the last 24 hours. Technical analysis suggests a potential breakout from a pennant pattern formation, which could lead to further gains.

TON, on the other hand, has rallied from $3.3 to $4.8 this week, registering a 45.8% growth. This recovery has propelled TON into the top 10 cryptocurrencies by market capitalization. The altcoin is currently facing overhead supply at $5.14, but a breakout could pave the way for further gains.

Conclusion

The cryptocurrency markets are currently in a bearish trend, led by a correction in Bitcoin triggered by the Spot ETF sell-off. While the downward momentum has temporarily halted, the potential for further decline remains high. Investors should exercise caution and consider the risks involved before making any investment decisions.