Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnAISquareMore
Altcoins tank as whole crypto market heads down

Altcoins tank as whole crypto market heads down

CryptodailyCryptodaily2024/02/21 15:52
By:Laurie Dunn

Table of Contents

  • Altcoins down $28 billion
  • Ethereum falls back below resistance
  • $ETH still looking bullish

With the Nvidia earnings report expected to be bad news in the stock market, this has spilled over into crypto. Bitcoin has just dipped under $51,000, and the altcoins are seeing some big red candles.

Many were expecting the start of a decent correction when bitcoin hit $53,000 on Tuesday, and here we are on Wednesday with the alpha cryptocurrency down 2.7% on the day already . $BTC could be held up by support here, at least until the Nvidia news comes out, but altcoins are suffering much more.

Altcoins down $28 billion

Altcoins tank as whole crypto market heads down image 0

Source: Coingecko/Trading View

Total 3 market cap (market capitalisation of all cryptocurrencies, excluding $BTC and $ETH) shows a clear picture of the altcoins. This does not look like a major dip at first glance, but thus far this is around 5%, which equates to a haircut of $28 billion for the altcoins.

That said, the price is holding at this level. Should it break this support, there is another level of support at $520 billion. 

Generally, when looking at some of the major altcoins, many of these have already dipped to their local support levels and some are now on the way back up. 

Ethereum falls back below resistance

Altcoins tank as whole crypto market heads down image 1

Source: Coingecko/Trading View

Ethereum (ETH) could be seen as a proxy for altcoin performance, and it can be noted in the long term weekly chart above that the $ETH price has now fallen back to the underside of the resistance band. Over the last three days it had almost reached the other side, but this Nvidia overhang has perhaps forced the pull-back.

$ETH still looking bullish

Altcoins tank as whole crypto market heads down image 2

Source: Coingecko/Trading View

However, in the shorter daily time frame it should be observed that $ETH still looks rather bullish . The price is inside an upward channel, and this could sustain the price if it came down to the bottom. Failing that, there is very strong support at $2,600, which also coincides with a fibonacci level. 

Therefore, looking beyond the potential fallout from a possibly rather negative earnings report for the best performing technology stock in $NVDA, it will arguably be all systems go again for the crypto market. Traders must decide whether to buy the dip, or to start taking profits - never an easy decision to make.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Investment Disclaimer
0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

The “American Mining Dream” of Bitcoin Mining Firms Shattered! Miners Shift to AI Data Center Construction, Scarce Electricity Becomes Key to Valuation Reshaping

Due to the rapid development of artificial intelligence and the crash in cryptocurrencies, Donald Trump's plan to concentrate bitcoin mining activities in the United States is collapsing. Compared to October last year, the computing power consumed by bitcoin mining has decreased by 18%.

智通财经2026/09/09 14:06
The “American Mining Dream” of Bitcoin Mining Firms Shattered! Miners Shift to AI Data Center Construction, Scarce Electricity Becomes Key to Valuation Reshaping

The "tax-free dividend" for data centers changes! Over ten US states reassess tax incentives, AI computing power expansion faces new obstacles

For AI computing power investment themes, policy changes primarily affect where to build, at what cost, and when investment returns can be realized. Ohio's data center incentives cover computing equipment, cooling systems, power equipment, and some building materials, so adjustments could impact the entire facility.

智通财经2026/09/09 13:56
The "tax-free dividend" for data centers changes! Over ten US states reassess tax incentives, AI computing power expansion faces new obstacles

86% of S&P 500 Components Beat Earnings Expectations! AI Boom Fuels S&P 500 Profit Growth, Full-Year Growth Forecast Raised to 32%

The full-year profit expectations for the S&P 500 Index are rising, supported by the artificial intelligence boom and stronger-than-expected earnings performance in the first half of the year.

智通财经2026/09/09 13:52
86% of S&P 500 Components Beat Earnings Expectations! AI Boom Fuels S&P 500 Profit Growth, Full-Year Growth Forecast Raised to 32%

From daily leverage to hourly leverage! The lesson from South Korea is still fresh, Wall Street is once again testing even more extreme retail trading tools

Defiance ETFs has filed documents with the U.S. Securities and Exchange Commission (SEC), planning to launch a series of leveraged funds that aim to double the gains or losses of certain individual stocks—not on a daily basis, but calculated hourly.

智通财经2026/09/09 13:52
From daily leverage to hourly leverage! The lesson from South Korea is still fresh, Wall Street is once again testing even more extreme retail trading tools