Bitcoin price dips below $56,000 as crypto market cap loses $70B

TL;DR Breakdown

• Following Bitcoin’s record high at $58,400, its price drops by $3000.
• Ethereum and other top altcoins have also experienced a similar dip with XRP standing out.
• The crypto market cap has lost about $70B.

Bitcoin experiences a huge price drop

The whole crypto community is in shock as the market cap experiences a $70 billion loss due to a drop in Bitcoin price in the last few hours. Following the new record high made by Bitcoin just recently when it crossed above $57,000, it has recorded more than a $3000 dip in the last few hours to settle around $55,000. 

As a result, Ethereum and other altcoins as well have taken on huge losses. However, XRP appears to be one of the few coins to survive the recent market drop, making about a 10% rise to $0.58. 

Bitcoin price had a positive outlook at the start of the week when it accrued more momentum to hit a new ATH of $58,400 yesterday. Many analysts have even predicted that the price would even rise higher. However, right now, the bears have jumped in to take profits, thus preventing any further rally for the cryptocurrency.

Bitcoin price could retrace to support levels

Right now, Bitcoin price is now trading near $55,000 and has impacted the whole cryptocurrency market as it records a $70 billion drop in market cap. Following the price drop, Bitcoin was able to reclaim some of its lost profits and is currently trading around $56,000.

Technical analysts are looking at three potential support levels at $55,000, $52,365, and $50,800 provided Bitcoin dips further. These are very crucial zones to watch out for on the chart. However, for price action to continue its upward rally, Bitcoin has to overcome the hurdles ahead, which are the resistance levels at $57,500 and $58,350.

Moreover, apart from the top cryptocurrency, top altcoins as well have taken a downturn over the last few hours. Two days ago, Ethereum made an ATH above $2,000 but is now hovering below the $1,900 price mark after losing about $200. Polkadot (DOT) also dropped by 2% after it hit above the $40 price level.