Bitcoin and Ether Plunge Amid Ongoing Market Correction

Bitcoin (BTC) and Ethereum (ETH) have plunged on Wednesday, extending their price declines. Bitcoin has fallen below $60,000, while ETH has dipped under $3,000. A strategist at LMAX Group notes that large bitcoin investors have not yet entered the market, suggesting the correction may continue.

Bitcoin and Ether Plunge, Correction Expected to Continue

April 17, 2024 - Bitcoin (BTC) and Ether (ETH), the leading cryptocurrencies by market capitalization, have experienced a significant downturn in recent hours, marking a continuation of the ongoing market correction.

Bitcoin Breaks Below $60,000 Threshold

Bitcoin, which briefly recovered above $64,000 earlier on Wednesday, has since plunged to below $60,000, its lowest level since early March. As of this writing, BTC is trading at around $60,200, down more than 3% over the past 24 hours.

Ether Dips Below $3,000

Ether, the second-largest cryptocurrency, has also fallen sharply, slipping below the $3,000 mark. ETH is currently trading at around $2,970, representing a decline of about 2.5% over the past 24 hours.

Broad Market Correction

The weakness pervading Bitcoin and Ether has reverberated throughout the broader cryptocurrency market. All sectors of the CoinDesk Market Index (CMI) are currently in the red, with the broad-market CoinDesk 20 Index losing 1.8%.

Market Analyst Sees Continued Weakness

This decline reinforces the notion that the cryptocurrency market is experiencing a cooling-off period after a prolonged rally that peaked last month. Bitcoin has shed more than 15% from its recent all-time high, while some altcoins have retraced by as much as 40%-50% from their highs, according to data from Glassnode.

Joel Kruger, market strategist at LMAX Group, believes that the current market weakness may persist for a while, citing the reluctance of large investors to buy the dip at current prices. Kruger notes that blockchain data indicates that large Bitcoin holders are refraining from increasing their exposure, suggesting the possibility of further weakness or consolidation before a reversal.

Technical Resistance and Support

Crucially, BTC's ability to hold above $59,000, a significant support level that has been tested twice in March, will be crucial in determining the near-term trajectory. If Bitcoin can maintain above this level, it will remain on track for a potential push toward a fresh all-time high and the $100,000 milestone. However, a break below $59,000 could trigger a more pronounced correction, potentially extending to the $45,000-$50,000 zone.

Market Outlook

The current correction should be viewed in the context of previous cryptocurrency bull market pullbacks, which have typically involved significant price fluctuations. The magnitude of this correction remains to be seen, but the large-holder behavior and technical indicators suggest that further volatility is likely. Investors should exercise caution and closely monitor market developments, especially the performance of Bitcoin and Ethereum, as these two digital assets continue to drive the broader cryptocurrency market.