Bitcoin faced the anticipated near-term downturn after a recent failed attempt to reverse the prevailing bearish trend, leading to a decline to $58,569.99 at the time of writing.
This dip triggered significant losses across the altcoin market, with Decred (DCR) and Digitex (DGTX) among the hardest hit, posting 10% and 5% losses, respectively, over the past day.
Decred loses 10%
Decred (DCR) fell by 10%, trading at $11.15 as intensified selling pressure took its toll.
The altcoin remains entrenched in a bearish trend, with daily trading volume plummeting by 65%, further dimming hopes of a near-term recovery.
If Bitcoin continues to struggle below the $60K mark, Decred could face even deeper losses.
Source: Coinmarketcap
Decred is distinguished by its innovative blend of Proof-of-Stake (PoS) and Proof-of-Work (PoW) mechanisms, which foster active stakeholder participation and enhance security.
Additionally, Decred’s governance model allows stakeholders to influence critical decisions, from funding allocations to protocol updates, giving the community a direct say in the project’s direction.
Digitex down 5%
Digitex (DGTX) also suffered in the wake of Bitcoin’s slump, losing 5% over the last 24 hours to trade at $0.00002496.
The altcoin’s daily chart reveals strong bearish dominance, suggesting that further declines may be on the horizon before any potential recovery.
Digitex has struggled in recent weeks, shedding approximately 25% of its value over the past month.
Legal challenges, including the closure of Digitex Games, have fueled negative sentiment around the token.
A strong performance from DGTX bulls is crucial to reversing the current downtrend, but the dominance of small-scale investors, with most wallets holding less than $1,000 worth of tokens, has limited the altcoin’s potential for significant price movement.
Source – Coinmarketcap
Current crypto market outlook
The cryptocurrency market is currently experiencing an unusual divergence, with prices falling despite Federal Reserve Chair Jerome Powell hinting at interest rate reductions and the US Dollar Index (DXY) hitting 52-week lows.
While risk assets like stocks remain positive, cryptocurrencies are reacting negatively, potentially pricing in negative news ahead of time, though no major event has surfaced to justify the recent drop.
Experts, however, predict that the current dip in cryptocurrencies could be short-lived, with a swift rebound expected for Bitcoin.
The leading cryptocurrency is testing a crucial weekly support level following its latest decline.
Prominent crypto analyst and trader Rekt Capital anticipates that a weekly close above $58,447 could trigger a short-term rally, pushing Bitcoin into the $60.5K to $61.5K range.
A rebound in Bitcoin could provide much-needed relief for altcoins like Decred and Digitex, potentially reversing their downward trends.
However, DCR and DGTX are likely to remain under pressure, mirroring the broader market’s performance in the coming sessions.
Investors and enthusiasts will be closely watching Bitcoin’s movements to gauge the potential impact on these and other altcoins.
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