The crypto market has declined by 1.8% over the last 24 hours, reaching $2.16 trillion. This continues a downward trend after an earlier rebound this month. Market capitalization has again reached its 200-week moving average, fluctuating around this level for the third consecutive week. A prolonged period of trading near or below this line is possible, similar to the period from June 2022 to October 2023, when such phases lasted between 4 and 18 weeks.
Bitcoin’s price has moved out of its upward channel, trading mostly below $63,000 since late Thursday. A formal trend break would require the price to settle below previous lows near $61,500. Even in that scenario, a price decline might halt in the $59,000-$60,000 range, which represents a critical support level for this year. This area’s importance is reinforced by its proximity to 2021 highs and the 2024 consolidation zone.
Ethereum is facing challenges, failing to regain ground above a long-term support line that has historically prompted buybacks over the past four years. Its rebound in the first half of the month was modest, not pushing the price above the February-March support zone. Earlier, ETHUSD saw active sell-offs after an unsuccessful attempt to rise above the 200-week moving average. The subsequent rebound was brief. Future price action will be monitored near support levels at $1,500, $1,200, and $1,000, where recent bullish reversals have occurred.
On-chain metrics for Bitcoin indicate a continuing bearish trend, according to Glassnode. BTC is trading 19% below its true market price, which is currently $77,200. While spot liquidity has improved, the market remains fragile.
Bhutan has transferred 533 bitcoins, valued at approximately $34.5 million, to the Binance cryptocurrency exchange, according to Arkham Intelligence. This transfer reduced the balance of the kingdom’s publicly tracked wallets.
Despite the crypto industry experiencing what blockchain company StarkWare describes as its most severe downturn, some positive factors exist. The outflow of capital from major companies’ cryptocurrency holdings could lead to a market reset and cleansing.
The current market conditions suggest continued volatility. Investors will be watching for Bitcoin’s ability to hold above the $59,000-$60,000 support range and Ethereum’s performance around its key support levels. The duration of the crypto market’s fluctuation around its 200-week moving average will be a key indicator for future trends.
The broader implications of capital outflows from institutional holdings and their potential to reshape the market structure remain to be seen. The coming weeks will likely provide more clarity on whether the current downturn represents a prolonged consolidation phase or a precursor to further price adjustments.