Crypto market cap drops 2.76% as Bitcoin falls below $110K, with altcoins like XRP, BNB, and Solana leading broader market declines.
Analysts see current correction as seasonal, with oversold conditions hinting at a potential Bitcoin rebound if it clears $118K soon.
In the past 24 hours, the global crypto market cap slipped 2.76% to $3.75 trillion as selling pressure weighed heavily across major assets. Bitcoin fell 2.75% to trade near $109,370, while Ethereum lost 2.30%, holding just below $4,000. XRP led declines among top altcoins with a sharp 4.33% drop to $2.75, followed by BNB sliding 5.56% and Solana shedding 5.14% to $196. The downturn also hit Dogecoin, down 3.71%, and Cardano, down 2.67%.
Understanding The Market Sentiment
Bitcoin Under Pressure
Bitcoin has slipped below $110,000, raising questions about whether the market is entering a deeper correction. On the daily chart, the Relative Strength Index (RSI) is approaching oversold levels. Analysts said that this is part of the natural market cycle where prices swing between overbought and oversold zones.
A sharp recovery above $118,000 would confirm the start of a new bullish cycle. Until then, downside risks remain.
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Bears in Control
For several weeks, the weekly MACD has signaled bearish momentum. This shows sellers remain in control for now. September has historically been a weak month for Bitcoin. While cycles can vary, the current correction fits within a broader seasonal trend. Earlier this year, Bitcoin defied expectations by setting a record high of $124,000 in August. Normally, summer months are slow, but this cycle was different due to external shocks like the tariff crash.
Whales, Sentiment, and Patience
Corrections often lead to fear, boredom, and frustration among investors. Analysts argue that large market players use these conditions to shake out weaker hands. Despite the short-term pain, the macro thesis remains intact. Oversold conditions could pave the way for a strong rebound later this year.
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FAQs
The crypto market is down due to broad selling pressure, with major assets like Bitcoin and Ethereum leading a 2.76% global decline. This is a typical market correction within a natural cycle.
Not necessarily. Analysts view this as a potential correction, not the end of the bull run. A strong recovery above $118,000 would be needed to confirm a new bullish phase has begun.
Historically, September has been a weaker month for Bitcoin. While cycles vary, the current pullback aligns with this seasonal trend observed in past years.
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