Digital assets markets started off the week in the red after Bitcoin (BTC) lost the $100,000 level and fell to $97,470, dragging most altcoins into corrections as well.
According to crypto data aggregator CoinGlass, there have been over $567 million in liquidations in the last 24 hours, most of them leveraged long positions in Bitcoin.
[adinserter block="1"]Closely followed analyst Rekt Capital tells his 519,000 followers on the social media platform X that the correction in altcoins has happened at a key point of resistance in the OTHERS chart, which tracks the total market of digital assets excluding the top 10 and is often used to gauge altcoin strength.
“Altcoin Market Cap has performed a Weekly Close above $425bn (black) for the 1st time since 2021
Black has always been a trouble area
That said, it’s likely Altcoin Market Cap will experience a much weaker rejection to prompt a much shallower retrace”
In another potential ominous sign for altcoins, the analyst also points out that Bitcoin dominance (BTC.D), which measures how much of the total crypto market cap belongs to BTC, is looking oversold based on the relative strength index (RSI) on the daily chart.
An oversold RSI typically implies a bounce back for the asset – in this case for BTC.D which suggests pain for altcoins.
“Daily Bitcoin Dominance RSI has dropped to its lowest point since August 2023
The BTCDOM RSI dropped to ~22
Over the past few years, BTCDOM dropped to such low RSI levels only 3 times
Each time preceded a BTCDOM reversal to the upside.”
At time of writing, BTC is trading at $97,546.
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