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Bitcoin Slips Below $66K Triggering Massive Losses for Altcoins: Weekend Market Watch

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Weekend Sell-Off Halts Crypto Market Momentum

The crypto market’s recent bullish momentum hit a formidable wall this weekend as Bitcoin’s price was firmly rejected from higher levels, sending it tumbling below the crucial $66,000 mark. The downturn has triggered a market-wide correction, with major altcoins seeing significant red and a handful of tokens experiencing double-digit losses.

After a promising week fueled by positive macroeconomic news, the weekend price action serves as a stark reminder of the market’s inherent volatility. Let’s break down the events that led to this dip and which altcoins are feeling the most pressure.

Bitcoin’s Rollercoaster Week Ends in a Pullback

The primary cryptocurrency had a largely positive week, with market sentiment buoyed by the US Federal Reserve’s decision to cut key interest rates. The lead-up to the FOMC meeting on Wednesday saw some predictable volatility, with BTC fluctuating before stabilizing.

The real action began post-announcement. Bitcoin went on the offensive, breaking through resistance levels and surging to a multi-week peak of nearly $68,000 in the early hours of Thursday. This impressive rally, which saw BTC gain thousands from its weekly low, had investors eyeing a potential new leg up.

However, the momentum couldn’t be sustained. Profit-taking and selling pressure mounted, leading to a sharp rejection. The sell-off intensified on Saturday morning, pushing Bitcoin’s price down to a low of $65,200. As of this writing, BTC has staged a minor recovery and is trading around the $66,000 level. Despite the drop, Bitcoin’s market capitalization remains above $1.3 trillion, though its dominance over the altcoin market has slightly dipped, sitting just under 56%.

Altcoins Bear the Brunt of the Correction

As is often the case, Bitcoin’s downturn has had an amplified effect on the altcoin market. Most larger-cap cryptocurrencies are nursing losses today, reflecting the broader risk-off sentiment.

  • Ethereum (ETH) has fallen below the key $3,500 support level.
  • Dogecoin (DOGE) is down by more than 3% on the day.
  • Chainlink (LINK) has slumped by a notable 5%.
  • Other major players like Solana (SOL), Avalanche (AVAX), and Sui (SUI) are also firmly in the red.
  • XRP is currently in a battle to hold a crucial support line, a level traders are watching closely.

The Biggest Losers of the Day

While the major altcoins are feeling the pressure, the most painful price drops are seen in the lower-cap segment. Several tokens have experienced severe downturns as liquidity tightens:

  • M (M) has been hit the hardest, plummeting by 16% to a price of $2.20.
  • MYX (MYX) has also seen a significant sell-off, dropping by 12%.
  • PENGU (PENGU) is down by 7%, rounding out the list of notable underperformers.

What to Watch Next

The total cryptocurrency market capitalization has shed over $50 billion since its recent peak, highlighting the scale of the weekend’s pullback. For now, all eyes are on Bitcoin. Its ability to hold the $65,000 support zone will be critical for short-term market direction. A failure to do so could open the door to further downside across the board.

Conversely, if buyers step in and defend this level, it could set the stage for a consolidation period or a potential bounce. Traders and investors should remain cautious as the new week begins, watching for signs of either a breakdown or a recovery.

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