On Tuesday, the crypto market experienced a significant decline, with its market cap dropping to $2.4 trillion and a 6.28% loss for the day. Leading cryptocurrencies Bitcoin and Ethereum also saw a 6-7% decrease, while Solana (SOL) and XRP saw larger drops of 11% and 4%, respectively.
This decline may have been fueled by investors cashing out profits from BTC ETFs, as seen on March 18th. Additionally, the meme coin sector has also been hit hard, with popular assets like DOGE, PEPE, WIF, FLOKI, and BONK all experiencing double-digit losses.
This sharp drop in value could be attributed to investors taking profits, as these assets were previously overbought after a rally in late February and early March.
In other news, Bitcoin (BTC) remains the top decentralized digital currency, using blockchain technology to facilitate peer-to-peer transactions without the need for intermediaries like banks. However, its price has been on a correction trend for the past six days, dropping from $73,800 to $63,300 and a 14.2% decrease. Its market cap also plummeted to $1.238 billion, with a 24-hour trading volume of around $65 billion.
The recent selling pressure on BTC can be traced back to significant withdrawals from spot BTC ETFs on March 18th. According to Wu Blockchain, there was a notable outflow of $154 million from Bitcoin spot ETFs, the first such occurrence in nearly two weeks. If the selling continues, BTC could potentially drop to $60,400 and $56,200, coinciding with the 38.2% and 50% Fibonacci levels.
In the meme coin sector, Pepe Coin (PEPE) has emerged as a community-driven cryptocurrency based on the popular Pepe the Frog internet meme. Despite its market cap of $2.67 billion and a spot in the top 50 cryptocurrencies, its price has also been affected by the overall market correction, dropping from $0.0000108 to $0.00000581, a 46.4% decrease.
Currently, PEPE is seeking support at the 50% Fibonacci retracement level of $0.000058, with potential further breakdowns leading to support levels at $0.00000466 and $0.000003. On the other hand, a recovery could push the price back up to $0.00000812 and $0.0000108.
Similarly, BONK is a unique cryptocurrency project within the Solana ecosystem, focused on improving liquidity on Solana-based decentralized exchanges (DEXs). With a market cap of $1.35 billion and a trading volume of $360 billion, BONK has also seen a significant correction, dropping from $0.000048 to $0.000021.
Under the influence of a descending trendline, BONK may experience further declines to support levels at $0.000018 and $0.0000147. However, a breakout above the overhead resistance could lead to a renewed recovery to $0.0000366 and $0.000048.
Overall, the cryptocurrency market continues to be in a correction trend, with Bitcoin dropping below $65,000 on March 19th. The meme coin sector has been hit particularly hard, causing holders to reevaluate their positions.
