🌎 Crypto Market Faces $140B Loss as Bitcoin Hits 5-Month Low

The first week of July saw significant bearish pressure, leading to substantial losses in the crypto market. Bitcoin (BTC) spearheaded the downtrend, consistently recording lower lows amid ongoing selling pressure. The rest of the market followed suit, resulting in a $140 billion decrease in the global crypto market cap, which fell to $2.11 trillion—its lowest level since late February. Despite the overall decline, a few assets managed to recover.

Top Cryptocurrencies to Watch This Week

Here are the top cryptocurrencies to keep an eye on this week, based on their notable performances during the recent downtrend:

Bitcoin Drops to 5-Month Low

Bitcoin’s week started on a mildly bullish note following a consolidation phase two weeks ago. However, bearish pressure soon emerged, with BTC diverging from U.S. equities, which are currently in a bullish phase.

Several factors contributed to Bitcoin’s bearish pressure, including creditor repayments from the bankrupt Mt. Gox exchange, the German government distributing thousands of BTC tokens, new holders selling off assets, and signs of capitulation from miners.

Last week, Bitcoin fell through multiple psychological thresholds, dropping from $63,000 to $58,000. It reached a 5-month low of $53,485 on July 5 but quickly rebounded. Despite a mild recovery, BTC ended the week with a 4.5% drop, slightly above $58,000. At press time, Bitcoin has again fallen below $58,000, with an additional 1.13% drop, but remains above the lower Bollinger Band at $56,347. A full recovery depends on reclaiming the 20-day SMA at $61,509 and the upper Bollinger Band at $66,676.

Bitcoin’s performance remains crucial for market sentiment.

Litecoin Slumps 12%

Litecoin (LTC) was among the many assets affected by last week’s market collapse. Although LTC showed resilience at the start of the week, it recorded three consecutive intraday losses from July 3 to 5, dropping 18.6% during this period. A mild market rebound on July 6 saw LTC gain 5.72%, but it closed the week with a 12.7% loss.

Litecoin’s MACD line crossed below the Signal line on July 4, confirming the bearish momentum. With both lines currently sloping downward, this suggests increasing bearish momentum. LTC needs to close decisively above Fib. 0.236 at $64.60 to defend against further declines this week.

Tron Bucks the Trend, Hits 4-Month High

Tron (TRX) was one of the few assets to buck the overall bearish trend last week. TRX started the week with an indecisive bearing but eventually increased by 3.5% over four days to $0.12997 on July 3, approaching the $0.13 territory for the first time since March 13.

The retest of the $0.13 region coincided with a widespread market drop, causing Tron to fall by 6.7% to $0.12117 on July 5. However, it quickly rebounded, and a recovery push on July 6 helped it reclaim bullish momentum, reaching a four-month high of $0.13028. Tron closed the week with a 3.5% increase.