What Caused the Sudden Drop ?
Cryptocurrency market sees high volatility with Bitcoin, Ethereum, XRP, and Dogecoin plummeting, resulting in a $3 billion market cap loss. What price levels should investors watch for these assets?
Crypto Market : Bitcoin, Ethereum, XRP, and DOGE Prices Drop… Is This the End of the Rally ?
The crypto market has recently been hit by a wave of volatility, leading to a significant drop in the prices of Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE). This volatility underscores the importance of closely monitoring the market’s evolution and adopting a nuanced approach in this ever-changing environment.
The price of Bitcoin recently reached $107,114, before experiencing a 4.23% decrease due to significant selling pressure. In the last 24 hours, positions worth $651 million have been liquidated. Despite this drop, the overall outlook for BTC remains bullish, with potential price targets at $118,000 and $135,000.
From a technical standpoint, the price of Bitcoin surpassed last week’s peak at $105,663 but then faced significant selling pressure from pending buy orders. This resulted in a 4.23% decrease from the new high at $107,114 to a local low of $102,100. It is important to note that BTC could drop to the critical support zone between $100,000 and $99,000.
The 3-day Woodies CCI is approaching the negative zone, historically a pivotal area for a trend reversal. Bitcoin is hanging in the balance. In higher time frames (3 days, daily, and weekly), BTC shows bearish divergences that should not be overlooked.
Even though BTC still seems to be holding steady in the coming days, the next few weeks will be crucial. A break below $92,000 could lead BTC to $89,000 to $82,000.
Drop in Ethereum (ETH), XRP, and DOGE Prices
The strong correlation between altcoins and Bitcoin explains why a decrease in the leading cryptocurrency affects other altcoins as well. Therefore, the recent drop in Bitcoin’s price has led to an 8.76% decline for Ethereum, 5.31% for XRP, and 9.11% for DOGE over the last 13 hours.
Following the recent decline, Bitcoin’s price has generated a bearish “engulfing” candle, negating the 3.23% gain seen on Sunday. Sustained selling pressure could push BTC down to $101,000, a key support level corresponding to the previous high price range. A break below this level could then drive BTC towards the range between $100,300 and $99,800.
For now, BTC is still well within its range and is creating a significant amount of liquidity both to the north and south. It broke the downward trendline overnight, then dropped to $102,000 this morning. However, a new support has formed below $101,500, so BTC could trigger stop losses before or after the market opens.
Although the overall outlook for Bitcoin’s price remains bullish, investors should carefully monitor a potential stabilization of BTC as it enters this support zone. This development could pave the way for BTC’s next record price targets at $118,000 and $135,000.
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