ZEC, NEAR Dive as BTC Recovers from Volatility

Bitcoin Recovers After Sharp Downturn, Altcoins Face Significant Losses

Bitcoin experienced another sharp price drop on Tuesday morning, but managed to establish a higher low and quickly rebound towards the $84,000 mark. The recovery comes after a volatile period that saw the cryptocurrency shed significant value.

Most larger-cap altcoins have suffered more pronounced declines. Among those seeing substantial drops are ZEC, ADA, and NEAR. SOL has fallen below $110, ETH is down over 1%, and XRP has lost its footing above $1.40.

Bitcoin’s recent struggles began at the start of the previous trading week when it was repeatedly rejected at the $87,000 resistance level, a pattern observed for the fourth or fifth time in the past month. Initially, the price held at $85,500, but bearish sentiment eventually took hold, pushing it down to $83,500. The most significant decline occurred last Thursday, when the cryptocurrency plummeted to $80,400.

After losing nearly $7,000 in a matter of days, a bounce-back was anticipated. This rebound materialized by Friday evening and continued through the weekend. Bitcoin then traded sideways for several days, fluctuating between $82,000 and $83,000, before attempting a breakout on Monday. However, this attempt was once again capped at $84,000.

Further volatility gripped the market on Tuesday morning as BTC dropped to $80,850 (according to Bitstamp data) before a rapid recovery to $84,000. These sharp price swings have a significant impact on over-leveraged traders, with the total value of liquidated positions soaring to over $800 million on a daily basis.

As of this report, BTC is trading approximately $500 below the $84,000 level. Its market capitalization remains steady at $1.670 trillion, according to CoinMarketCap, with its dominance over altcoins increasing to 59.7%.

Ethereum saw a dip to $2,400 earlier today before recovering to over $2,500, though it is still down 1.2% for the day. BNB has fallen to $745, while XRP has moved further away from the $1.40 level. SOL is trading below $110, and both HYPE and ADA have experienced 5% declines. Cardano’s token is currently priced below $0.24.

ZEC has dropped by over 6% to $1,226, and NEAR has plummeted by 10% to under $5.20. Other cryptocurrencies in the red include HBAR, ONDO, ENA, AVAX, PUMP, and WLD. STX and BTW are among the few exceptions showing gains today.

The total cryptocurrency market capitalization has decreased by over $20 billion in the past 24 hours, settling at $2.810 trillion on CoinMarketCap.