The cryptocurrency market faced a strong downturn on Thursday, with Bitcoin dropping over 3% and coming close to the key $100,000 support level. This drop sent shockwaves through the altcoin market, causing several major tokens to record double-digit losses as investors moved to secure profits and limit risk.
Bitcoin’s Fall Triggers Broad Market Weakness
Bitcoin’s price decline followed an initially optimistic reaction to the IPO debut of stablecoin issuer Circle on the New York Stock Exchange. While the market welcomed the development at first, momentum quickly shifted as traders began to take profits. The shift in sentiment pushed Bitcoin below crucial technical support levels, which only intensified the selling pressure.
From a technical analysis perspective, Bitcoin had formed a head-and-shoulders pattern, with the neckline positioned near $102,250. Once this level was breached, prices continued to decline toward the 50-day exponential moving average (EMA) at around $100,860. Momentum indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) showed increasing bearish signals—MACD turned negative, and the RSI dropped below the 50-neutral mark to around 42, confirming a loss in bullish strength.
If Bitcoin fails to hold above the 50-day EMA, the next likely support lies near the 100-day EMA at around $96,732. On the other hand, reclaiming the $102,250 level could open the door for a recovery toward the previous local high of approximately $106,750.
Altcoins Suffer Heavy Losses
The weakness in Bitcoin quickly rippled across the altcoin market. Leading the declines were Lido DAO (LDO), Jupiter (JUP), and Fetch.ai (FET)—each of which saw losses exceeding 10% within a short time frame.
Lido DAO dropped sharply by about 14%, falling below the $0.80 mark and nearing its May low around $0.74. Jupiter and Fetch.ai also faced heavy pressure, reflecting a broader trend of traders fleeing more volatile altcoin positions.
What’s Behind the Market Drop?
Three key factors contributed to the current market correction:
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Profit-taking after recent gains: The market’s recent bullish momentum encouraged many traders to secure profits, especially after Circle’s IPO event, which initially boosted sentiment but failed to sustain the rally.
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Technical breakdown in Bitcoin: As Bitcoin broke below significant chart patterns and moving averages, automated stop-loss orders were triggered, leading to further sell-offs.
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Altcoin volatility: Altcoins are typically more sensitive to market corrections. As Bitcoin weakened, risk appetite quickly dried up, causing panic selling in altcoins.
Market Outlook
In the near term, both Bitcoin and altcoins face heightened volatility. Bitcoin’s ability to stay above the $100,000 level will be critical in determining whether the market finds short-term support or continues its decline. A rebound above the broken neckline ($102,250) could restore some bullish momentum, potentially lifting altcoins as well.
However, if Bitcoin fails to hold above key support zones, altcoins like LDO, JUP, and FET may continue to underperform and revisit previous lows.
Conclusion
The recent drop in Bitcoin has sent a clear signal to crypto investors: despite growing institutional interest, the market remains highly reactive and vulnerable to technical shifts. With altcoins experiencing steep losses, caution is warranted in the short term until key support levels are confirmed or regained.
