A top Aussie analyst says 90 of the top 100 cryptos are now “technical sells” after Bitcoin rallied and then plummeted overnight.

ThinkMarkets analyst Carl Capolingua told Ausbiz TV that even cryptos like Cardano and Polkadot that started the year off well look “awful now” from a chart perspective.

“We are now entrenched in supply-side markets,” he said.

People talk about buying the dip, but the market seems more interested in selling the rally, Capolingua said, noting what happened overnight.

On Binance, BTC reached a five-day high of US$43,500 around 3am AEDT, but then fell steadily, plunging by $1,500 in the space of the half-hour that ended at 9am. The drop later continued, with Bitcoin reaching a 10-day low of $40,400 for the close of the daily candle at 11am AEDT (midnight UTC).

Bitcoin trading on Binance since the start of the year.

The move mirrored a drop in US equities, which sold off heavily after a rally earlier in the session.

For cryptos, a bottom doesn’t look likely until Bitcoin falls into the $30s, Capolingua said, naming US$35,000 as a potential target.

“A bit of a blow-off, before it’s time, potentially, to buy Bitcoin for that next phase — at some stage it’s gonna pop up.

“It really is a confidence game, and the confidence is not in crypto right now, unfortunately.”

At 12.14pm AEDT, Bitcoin had recovered slightly, trading at US$40,797, down 2.5 per cent from 24 hours ago.

Ethereum was changing hands at right around US$3,000, having hit a 10-day low of US$2,972 also around 11am.

Crypto market down 2.9%

Overall the crypto market stood at US$2.02 trillion, down 2.9 per cent from 24 hours ago.

Only six of the top 100 cryptos were in the green, although only one – Secret Network – had suffered double-digit losses.

SCRT tokens were down 13.9 per cent to US$7.84.

Solana was down 7.3 per cent to US$125, the biggest dip of any top 20 coin.

Cosmos (ATOM) was up 4.3 per cent to $39.97, the biggest gains of any top 100 coin. Klaytn had edged 1.7 per cent higher.