Key Insights
The crypto market started the month with a significant decline, with the total market cap dropping over 5%.
Liquidations have doubled compared to the previous day, with leveraged bulls taking the biggest hit ($312 million out of $363 million). This indicates the bears are currently in control.
Bitcoin is testing a crucial support level and could either rebound or experience a further decline.
Ethereum fell below $3,100, raising the possibility of a further decline towards $2,700.
Tron surprisingly displayed resilience during the market downturn, experiencing minimal decline
The crypto market has started the new month on a bearish note, as shown by the more than 5% decline in the total market cap.
Bitcoin now trades at around $59,000, the fear and greed index has declined to neutral ground with a reading of 52, and the total crypto heatmap looks like this:
The crypto heatmap
As shown above, the crypto market is almost completely red, indicating that the bearish influence that swept through the market was far-reaching.
In terms of liquidations, we can see the effects of this decline more clearly, considering how the figures have doubled since yesterday.
The crypto market’s liquidations
According to Coinglass, we had around $363 million taken from leveraged traders so far, with a staggering $312 million taken from the bulls alone.
Overall, we can conclude that over the last day, the bulls have suffered the most from unfavourable market conditions and that the bears are currently in control.
Bitcoin currently trades at around $59,800 after declining under $60,000 over the last day.
As shown by the chart below, the cryptocurrency is now testing the lower support of the falling wedge below and could either be on the verge of a breakdown and further decline or a rebound from here.
So which is it?
Bitcoin’s decline from highs
For one, the RSI shows that we are currently in bearish territory. This means that the bulls need to take extra care to prevent a decline from current price levels.
If Bitcoin loses its footing from the 59,000 zone, there are currently no strong indicators that a $48,000 retest will not occur.
At the time of writing, Ethereum currently trades underneath the crucial $3,100 support.
This means that further decline is entirely possible, at least until we see a retest of the lower support of the wedge formation shown below, around $2,700.
Ethereum’s price decline
Investors should keep an eye out for what happens around this $2,700 zone because a break further below might signal disaster for Ethereum and its price.
In the longer term, however, Ethereum's bullish outlook remains intact, with the current decline being healthy and normal.
The interesting thing about Tron is that it remained untouched by the general market decline over the last day.
The cryptocurrency hasn’t been bullish by a lot. However, it only declined by around 0.16% in the same timeframe, which is a lot considering how Bitcoin declined by 6% and Ethereum declined by 6.3%.
Tron’s price action
As shown by the charts, it appears that Tron is consolidating after a breakout from the wedge formation shown above, indicating that despite the generally bearish sentiment, the cryptocurrency still has a lot of bullishness in store.
Zooming out into the weekly charts, we can see that ATOM currently trades in a descending channel, as shown by the chart below.
However, what is remarkable about ATOM is that despite the general market downturn, the cryptocurrency is up by around 4% at the time of writing.
ATOM in the charts
The explanation for this 4% gain can be found in the charts.
As shown above, the cryptocurrency's bulls seem especially active at around $7.6 and were able to prevent further decline as of yesterday.
This means that ATOM has a chance at recovery from here, and could be well on its way towards a rebound to $12.55, and then a breakout towards $21.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.