I Thought This Was a Bull Run: Why is Crypto Down Today?

Your first bull run? Don’t sweat it; with Bitcoin down, many new retail traders are asking why crypto is down today? And Why is crypto down? Jump into crypto market analysis here.

Crypto prices are cooling off after record gains on November 11. Data streams from Coingecko show that the total market cap is down 3.5% to $3.02 trillion.

Interestingly, even if the total market cap is slightly lower, it remains higher, at over $3 trillion, more than it was by the start of this week.

Crypto Slows Down After Bitcoin Rejects At $90K

As of November 6, the total market cap stood at $2.41 trillion, but over the past week, this number has sharply increased, peaking at $3.1 trillion yesterday before dropping to spot levels.

Over this time, Bitcoin, Ethereum, Solana, BNB, and other altcoins added a whopping $700 billion.

( Source )

This capital surge saw Bitcoin break $90,000 for the first time in history, lifting sentiment and sparking a wave of demand for high-risk, high-reward tokens, mainly meme coins.

When Bitcoin broke $90,000, the total valuation of meme coins also rose to over $117 billion, a near 2X spike in less than a month.

To determine whether the cool-off will continue, the performance of Bitcoin over the next few days will provide a hint.

It is easy to see why. Bitcoin commands a market share of over 57% as of November 13.

Additionally, it has a direct correlation with altcoins. Any BTC rally often lifts other quality altcoins, including WIF, Solana, BNB, etc.

( Source )

The less liquid a token is, the more gains there are. However, this also means that altcoins tend to lose more when BTC slumps.

DON’T MISS: The Next Cryptocurrency to Explode in 2024

Will The Bitcoin And Crypto Uptrend Continue?

So, the question is, will the uptrend continue?

A close look at the daily chart shows that Bitcoin Price Trading volume in 24h Last 7d price movement is cooling off after the possible overextension on November 12.

Following through on the November 11 bullish bar, prices closed above the upper BB as a bear bar.

Prices appear to be searching for equilibrium at spot rates, dropping lower into the Bollinger Band range.

( BTCUSDT )

Though the coin is down, the uptrend remains, and the momentum for the upside is high.

Bitcoin bull bars band along the upper BB, indicating high volatility and strength.

In the short term, the local support will be the November 12 low at $85,000.

If bulls sustain prices above this round number, the coin can easily breach $91,000 as optimistic traders target $100,000 and later $102,000.

Thus far, Willy Woo, an on-chain analyst, thinks this will be the case.

Taking to X, Woo said there are no prior resistances above this week’s highs at around $90,300. Therefore, if there is a firm breakout, the Fibonacci extension tool places Bitcoin at $102,000 should bulls press on.

However, as a caution, the pace of this growth will largely depend on market conditions and the general flush out of over-leveraged long positions.

DISCOVER: The Hottest Upcoming Binance Listings in 2024 Meme Coin Market

The Flush Out: Liquidations Rip Through the Market

According to Coinglass, the pullback on November 12 saw over $619.5 million of leveraged positions liquidated. Most of them were longs, at $420 million, and others were shorts, at $198 million.

More than 204,000 traders experienced liquidation, with the largest single order for the ETHUSDT trading pair on Binance valued at $11.87 million.

( Source )

Altogether, Dogecoin, Ethereum, and Bitcoin traders saw the most liquidation on Binance, OKX, and Bybit.

If this deleveraging continues, the uptrend will be slowed as the market flashes out speculators keen on overleveraging, maximizing gains.

EXPLORE: Ginnan The Cat Explodes +105% Amid Dogecoin Powered Meme Supercycle

Join The 99Bitcoins News Discord Here For The Latest Market Updates