As usual, the crypto market often faces a drop in prices on weekends and in addition there are signs of selling. The value of the crypto market has fallen below $ 1.4 trillion while Bitcoin and other cryptocurrencies have only been able to show a slight increase for a handful.
Market analysts mostly believe that among the factors of the selling pattern over the weekend was due to the absence of trading from banks and financial institutions. This limits traders from adding more cash to their accounts and consequently low trading volumes on weekends. Low trading volumes often drive sales and then start soaring back when Asian markets open.
Moreover, margin trading on weekends is also one of the main reasons behind market price changes where investors borrow money from exchanges to trade with high leverage. If the price of a crypto asset falls below margin, the exchange must sell the crypto asset of the investor who failed to repay the loan. This puts additional selling pressure causing weekend volatility.
Adding to the worries, this week negative sentiment is seen to be more dominant in the market, which is mostly from China as well as Binance’s operational issues. It depends on whether Bitcoin and major altcoins are able to maintain major support levels or decline further.
The crypto market lost a combined total of $ 120 billion over the last two days as sales continued among investors. The price of Bitcoin (BTC) fell below the $ 33,000 support and currently, it has been able to rise slightly by trading at $ 33,208.99.
Bitcoin managed to break the key resistance of $ 36,000 last weekend but failed to defend it and then slipped below $ 35,000.
Over the last 24 hours, Ethereum has lost 1.03%, Cardano is down 0.05%, Ripple’s price is up 0.64%, Binance Coin is down 0.77%while Dogecoin is up 4.33%.
