The crypto market went back to its bearish price action as soon as the Merge was over. The crypto market was consolidating prior to the Ethereum merge, but started to crash soon after the switch. In a previous article, we stressed on the importance of not buying Ethereum or any other crypto before the merge. The reason for this rationale was that the market was still showing bearish signals. Today, the market retraced lower by an average of more than 7% as Bitcoin slipped below its support of $18,500. Which crypto is the riskiest during this bear market?
Why is Bitcoin Price Fallling today?
If we zoom out and look at Bitcoin’s price action since the beginning of the year, we can see that prices have been on a continuous downtrend. The $20,000 Bitcoin price acted as a strong support, hence the current consolidation of prices around that area. BTC managed to sometimes rally towards $22,500 only to retrace lower toward the strong support price of $18,500. This is exactly what happened recently, as prices reached the top of the consolidation area and simply retraced lower when the hype of the Ethereum merge faded.
Which Crypto is the RISKIEST?
In the past 24 hours, the crypto market lost more than 7% in its market capitalization reaching $903 Billion. This not only breached the $1 trillion valuation but also signals more bloodshed across cryptos. Usually, after such sudden price decreases in the crypto market, we can see a small retracement higher. That’s why we’ll start to see some cryptos gain slightly after reaching their support areas. Short sellers need to be careful where they place their stop loss areas.
Let’s see which cryptos lost the most in the past 24 hours.
#1 Ethereum Classic (ETC)
Everyone was eyeing to buy ETC. This was in anticipation of miners moving to another PoW mechanism. However, prices did not seem to do okay after the merge. ETC prices started to dip as soon as the merge was over. It seems that big market speculators bought ETC way before the merge hype and anticipated this rise in prices. When ETC reached its resistance price of $40, prices started to slide and reached the current $29, losing around 14% in the past 24 hours.
#2 Kusama (KSM)
Kusama barely benefited from the rise in crypto prices before the merge. Its KSM price barely rose from $45 to $55, but then continued on its downtrend. In the past week, Kusama lost more than 28% in prices, reaching the current low of $39. This breach in the $40 psychological price is risky, as prices might move to lower lows.
#3 EOS (EOS)
EOS was not spared from the crypto crash, as its prices dropped by more than 12% in the past 24 hours. Looking back at the entire week, it wasn’t a good one either as prices fell by more than 25%. EOS was doing pretty well and had a nice uptrend since early July 2022. However, the recent Merge crash took heavy toll. EOS fell from a high of $1.8 and reached the current price of $1.2, losing more than 30% in the past 10 days. If prices continue lower, EOS risk reaching 1$.
