Major Cryptocurrencies Face Crucial Tests as Market Downturn Deepens
Major Cryptocurrencies Face Crucial Tests as Market Downturn Deepens
The cryptocurrency market is currently under significant bearish pressure, with both Bitcoin (BTC) and Ethereum (ETH) testing critical support levels. Ethereum has experienced a sharp 10% decline, struggling to hold above $3,400 with bulls attempting to defend the $3,050 zone. Similarly, Bitcoin has slid back to the pivotal $100,000 psychological support, a level analysts are calling a 'moment of truth.' Failure to maintain this level could lead to further drops towards $90,000, potentially filling a CME gap. Conversely, a successful defense could set the stage for a modest rebound. Technical indicators across both major assets largely confirm the prevailing bearish sentiment.
Ethereum Tanks Amid Bearish Wave
Ethereum (ETH) price has initiated a fresh decline, falling below $3,550 and struggling to maintain its position above $3,400. The digital asset experienced a sharp dip, entering a bearish zone after failing to clear the $3,650 resistance. A low was established at $3,058, with the price now consolidating losses. Key resistance levels for ETH are identified around $3,350 and $3,500, while major support sits near $3,200, with further downside potential towards $3,050 and $3,000. Technical indicators, including the Hourly MACD and RSI, are showing clear bearish momentum, with MACD losing steam in the bearish zone and RSI falling below the 50 mark, indicating selling pressure.
Bitcoin Confronts 'Moment of Truth' at $100,000
Bitcoin (BTC) has also faced intense selling pressure, sliding back to the crucial $100,000 support level. This move follows a fresh decline below $105,000 and a 9% drop from its weekly opening, marking the first time in months BTC has traded around this psychological barrier. Analysts are labeling this juncture a 'make-or-break moment' for the cryptocurrency's near-term trajectory. While a dip below $100,000 occurred, hitting $98,900, the price is currently consolidating losses. Market watchers warn that a failure to decisively hold $100,000 could lead to a further drop towards the $90,000 level, potentially filling an open CME Gap from Q2. Conversely, some analysts suggest that if BTC successfully maintains this support, a rebound of 5%-11% is possible, potentially pushing the price to $106,500 or $112,000. The 50-week Exponential Moving Average (EMA) also sits around the $100,000 level, an indicator that has historically marked bottoms of corrective phases. However, losing this level would signal significant trouble for the flagship cryptocurrency. Both the Hourly MACD and RSI for BTC/USD indicate strong bearish conditions, with MACD gaining pace in the bearish zone and RSI below 50, pointing to continued downward momentum.