BTC and ETH Dip as Crypto Rally Stalls

TL;DR

• BTC and Ether are trading in the red as altcoins suffer huge losses.

• Analysts remain optimistic that the market will rebound soon.

ETH Drops Below $3,800 as Market Sheds Gains

The cryptocurrency market rallied over the weekend, with Bitcoin approaching the $120k mark while Ether targeted the $4k psychological mark. However, the market gave up most of its gains on Monday as altcoins recorded huge losses.

Bitcoin dropped below $118k after losing 1% of its value, while Ether failed to break above the $4k resistance level, down 3% within 24 hours. Ripple’s XRP lost 5% of its value as it continues to chase the all-time high price of $3.84 it achieved eight years ago.

Dogecoin is the worst performer among the top 10, losing 9% of its value in the last 24 hours. Cardano’s ADA is down 6.5% while BNB is trading around $830 after hitting an all-time high of $857 earlier on Monday.

With this bearish trend, the total crypto market cap is down 2% and now stands at $3.89 trillion. Despite that, traders remain optimistic about the market’s performance. Funding rates for perpetual futures remain above 15%, indicating aggressive long positioning. However, recent flows show large players taking profit and hedging downside.

In a note shared with investors, QCP Capital stated that,

“Momentum, narrative strength, and macro tailwinds are still on our side. Hodlers and institutions will likely buy the dip, as we saw on Friday.”