The cryptocurrency market has faced significant declines, with Bitcoin's price dropping over 11.17% in the past week to around $60,000, while Ethereum has fallen below the critical $3,000 support level, currently trading just above $2,900.

This downturn in the crypto market coincided with negative reports about the US economy, which have impacted other risk-on assets as well.

The recent bearish shift in the Relative Strength Index (RSI) is notable as it is the first since November 2021, often indicating a prolonged downturn in prices.

Investor caution is heightened as mixed signals from upcoming economic indicators may further influence market sentiment.

The US Non-Farm Payrolls (NFP) report released recently showed a rise of only 114,000 jobs in July, significantly below the expected 175,000, adding to economic concerns.

Despite the bearish market conditions, there is a more bullish sentiment emerging, driven by institutional interest and a changing policy environment, although short-term price fluctuations remain high.

Large holders, or 'whales,' are actively investing in Ethereum, indicating a bullish outlook as they typically hold assets until they reach desired profit levels.

Technical indicators suggest that while bears are currently in control, a recovery above the 20-day EMA could indicate a prolonged range-bound movement.

BNB Chain metrics have also been negatively impacted during this market correction, although long-term investor confidence remains strong.

Liquidations have surged, with over $197 million worth of leveraged positions liquidated in the past 24 hours, reflecting the intense selling pressure in the market.

Despite a strong start to the week, including interest from major US pension funds in Bitcoin ETFs, ongoing economic worries have continued to affect cryptocurrency prices.