Bitcoin Rejected at $104K, Privacy Coins ZEC & XMR Surge

Bitcoin experienced one of its most challenging weeks in recent memory, marked by repeated rejections at key resistance levels and significant price declines. The primary cryptocurrency was stopped for the second time this week at $104,000, triggering a weekend sell-off that pushed prices south by over two grand. This rejection pattern began earlier in the week when BTC was turned away at $111,000 on Monday, initiating a nosedive to around $104,000.

The bearish momentum intensified on Tuesday when another violent decline saw Bitcoin dumping below $100,000 for the first time since June, with the asset bottoming at just under $99,000. While Wednesday brought a brief recovery attempt that spiked to $104,000, the resistance level proved insurmountable once again. Friday evening saw a similar pattern unfold as BTC spiked to $104,000 but couldn’t surpass that critical level, leaving the cryptocurrency trading below $102,000 as the weekend progressed.

The cumulative effect of these repeated rejections has resulted in Bitcoin declining by over 8% in the past week, with its market capitalization tumbling to $2.020 trillion. The cryptocurrency’s dominance over altcoins also suffered significant damage, falling well below 58% as investors sought alternatives amid the ongoing volatility.

The broader cryptocurrency market largely mirrored Bitcoin’s bearish sentiment, with most larger-cap altcoins registering substantial losses on a daily basis. Ethereum, the second-largest cryptocurrency by market capitalization, slid beneath the $3,400 support level, continuing its correlation with Bitcoin’s price movements. XRP experienced similar pressure, slipping below the $2.30 threshold that had previously provided support.

Other major cryptocurrencies faced even more painful declines, with DOGE, ADA, LINK, XLM, and SUI all joining the downward trend. The recent high-flyer Internet Computer (ICP) was particularly hard-hit, declining by more than 12% daily, while Bittensor (TAO) dumped by 6%. This widespread correction across the altcoin space reflects the interconnected nature of cryptocurrency markets, where Bitcoin’s price action often sets the tone for smaller digital assets.

The total cryptocurrency market capitalization declined by almost $40 billion since the previous day, settling at $3.510 trillion. This substantial decrease underscores the breadth of the current market correction and highlights the challenges facing investors seeking shelter from the ongoing volatility across most major digital assets.

While most of the cryptocurrency market struggled with bearish pressure, privacy coins emerged as notable outliers with impressive performances. Zcash (ZEC) and Monero (XMR) stole the show with double-digit gains that defied the broader market correction. ZEC rose by over 11% daily to approach the $600 price level, demonstrating remarkable resilience amid widespread selling pressure.

Monero showed even stronger performance, tapping $420 after a 13% surge that positioned it as one of the day’s top performers. The substantial gains for both privacy-focused cryptocurrencies suggest that investors may be seeking alternative investment opportunities outside of the mainstream digital assets that typically move in correlation with Bitcoin. This divergence in performance highlights the nuanced nature of cryptocurrency markets, where specific sectors can outperform even during broader downturns.

The strong showing by privacy coins comes at a time when regulatory scrutiny around anonymous transactions continues to intensify globally. Despite these challenges, ZEC and XMR’s ability to post double-digit gains while major cryptocurrencies like Bitcoin and Ethereum struggle indicates ongoing demand for privacy-focused blockchain solutions and suggests that this sector may be developing its own independent market dynamics separate from the broader crypto ecosystem.