Tuesday trading saw mixed results for the cryptocurrency market due to profit booking in the main crypto currencies. Bitcoin, Ethereum, Solana, Cardano and Tron were trading in the red, while BNB, XRP, Dogecoin, Chainlink, and Toncoin were in the green.

As the price of bitcoin increased, traders were forced to liquidate their holdings because they could not fulfill the margin requirements. Shortly after Bitcoin ETF listings, the price of bitcoin fell again. The macroeconomic environment is predicted to keep the market erratic in the upcoming weeks.

Ethereum (ETH) was down 1.6% at $2,513, and Bitcoin (BTC) was down 0.6% at $42,667. In contrast, alternative coins like BNB and Toncoin saw increases of 4.5% and 13.2%, respectively.

Following the introduction of the spot ETF, the price of Bitcoin dropped unexpectedly; nevertheless, the positive performance of altcoins could indicate an early reversal. Although there was a lot of excitement surrounding spot Bitcoin exchange-traded funds, the fact that there was no big upward rise may have encouraged traders to take profits. As a result, there was a significant decline to $41,500.

The recent volatility in the price of bitcoin may have been caused by short-term traders booking profits due to the market’s inability to hold values over $48,000, which led to a precipitous decline on January 12. The RSI is just below the middle and the 20-day exponential moving average ($43,933) is beginning to decrease, suggesting that bears are making an attempt to pull back.

The cryptocurrency market saw little activity and quiet trading over the weekend. Technically speaking, Bitcoin dropped below $42,000 levels following a new high of $49,000. Given that it is currently trading below the 20 EMA Daily, it seems bearish to neutral. Maintaining BTC at these levels and above $41,000 is critical; failing to do so could lead to a bearish scenario.

In recent days, ETH has shown strength in comparison to BTC after a significant gain. As of right now, ETH is consolidating, which is regarded as a positive trend. ETH needs to stay above $2,450, which is the critical level. For ETH, the local barrier is $2,660.

The value of the world’s cryptocurrency market dropped by 0.32% on Tuesday to approximately $1.68 trillion over the previous day.

The dominance of Bitcoin is 49.78% at the moment. The volume of BTC increased 17.5% to $19.84 billion in the last day.