Bitcoin Takes a Tumble Over Weekend

Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.

BTC 4-hour candle chart, approximately 11:40 A.M. ET, 1/24/22.

Bitcoin has taken a bit of a dive over the weekend, testing below $33k overnight.

The dips over the last week have been led by the Fed’s announcement wreaking havoc in fiat markets, and BTC has followed that to an extent. However, BTC is holding fairly strongly above this area of support, while the SPX is in free-fall. Even though BTC is holding in this area, it may be important to keep an eye on broader market sentiments beyond just the crypto market in order to understand all of the factors that could affect price action. This includes keeping an eye on fiat-based markets as well.

Bitcoin’s dips have led most of the cryptocurrency market to see massive drops across the board, often at significantly higher percentage points than BTC. The overall cryptocurrency market cap is once again testing $1.5 trillion. The 24-hour volume of the cryptocurrency market is currently around $112 billion. Bitcoin dominance is up as disproportionate amounts of money have exited ETH and the broader altcoin sector. BTC dominance is currently at 41.7% while ETH dominance is down to 17.4%.

Ethereum 4-hour candle chart, approximately 12 P.M. ET, 1/24/22.

Ethereum is largely following BTC’s movement. In the last week or so, ETH has seen an over 30% dip in price. This is a fairly significant dip on the 7-day forecast compared to BTC’s 18% dip. This isn’t too surprising as smaller tokens take less money to move them in either direction. And, since BTC is often traded as a ratio with other tokens, many times stop losses within the ratio to BTC are hit in both ETH and other altcoins.

It would not be surprising if we see ETH continue to follow BTC’s movements, albeit with more volatility in its swings along with the rest of the altcoin space.