Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of the vulnerability associated with various Web3 interactions. The issue had to do with the library of Ledger, the popular hardware wallet provider. The Ledger’s vulnerabilities saw $600,000 drained, impacting the entire crypto market. Bitcoin shed almost $2,000 and bounced off almost immediately following the Ledger fix, leaving millions in liquidated positions.
Bitcoin Price Outlook
The daily chart shows that the Bitcoin price has been experiencing a lack of momentum, inverting its recent rally towards $45,000. The digital asset has been experiencing a lack of momentum, characterized by a sequence of downturns. Even so, Bitcoin remains above the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has dropped below the signal line, indicating an increase in selling pressure.
As such, the Bitcoin price is likely to continue trading within the tight range of $40,750 and $42,500 in the immediate term. Investors will be eyeing several technical indicators, including moving averages, for clues about Bitcoin’s next move. A drop below the critical level of $40,000 might push the price lower to the 50 DMA at $38,530.
BTC Price Chart
