In the past 24 hours, the total market capitalization of the cryptocurrency sector has plunged by over 8.6% as Bitcoin continues to find a new support level.
A large percentage of the top-100 cryptocurrencies are currently sitting in a sea of red. Meanwhile, about $150 billion has left the market as the total market cap dropped from $1.81 trillion to $1.64 trillion.
As of press time, the reason for the sharp drop in market prices cannot be determined. However, Bitcoin’s drop below its support at $54,000 may have triggered the general market correction. The flagship cryptocurrency is currently exchanging hands at $52,700 after dropping to a 24-hour low of $50,856.
On March 13, Bitcoin set a new all-time high at above $61,000. Since then, the digital asset has been consolidating between $55k and $59k. Bitcoin finally broke through its support on March 22 and has maintained its downward trend. With $54,000 broken, the next level of support is at the 50-day exponential moving average (EMA), which is slightly above $50,000.
Several other cryptocurrencies recorded losses with Bitcoin. Ethereum, for instance, fell by 4% and is currently trading slightly above $1,600. Ethereum dropped to a 24-hour low of $1,560. To date, Ethereum has corrected by 22% from its all-time high of $2,000+.