The crypto markets have left traders sweating as prices have dropped significantly. Bitcoin (BTC) has fallen off a cliff, losing the 200-day SMA and slipping below $55,000. The cryptocurrency is currently trading at $53,937, with bears driving it even lower.
Other major cryptocurrencies, such as Ethereum (ETH), Solana (SOL), and Toncoin (TON), have mirrored Bitcoin’s slump and registered significant drops as well.
Crypto markets Slump As Correction Takes Hold
The cryptocurrency market has seen a significant drop over the past couple of days as bears drive prices down dramatically. BTC slumped below $60,000 on Thursday, and the current session sees the price below $55,000, with sellers looking to drive it even lower. Even the meme coin sector mirrored the slump in the larger market, with prices crashing across meme coins. The global crypto market saw a slump of almost 5%, dropping to 2.07 trillion. The Fear and Greed Index displays Fear, indicating that prices could drop further.
Bitcoin Price Analysis
Bitcoin (BTC) has been in the red since getting rejected at the $64,000 level on Monday after a largely bullish weekend. After registering a marginal increase on Monday, BTC fell into the red on Tuesday, dropping by 1.25% to $62,106. Bears continued to dominate the market on Wednesday, as BTC registered a drop of just over 3%, falling to $60,215. Continued selling pressure allowed sellers to breach the $60,000 support level on Wednesday, as BTC slumped by over 5% to $57,097. This price drop also meant BTC lost the 200-day SMA, a worrying sign for traders as the 200-day SMA is known to hold the price during bull markets. The current session sees BTC down by just over 4%, trading at $54,688.
Bitcoin’s price action comes against the backdrop of a staggering transaction worth $2.7 billion by Mt. Gox to an unknown wallet. Mt. Gox wallets have become active again and have started moving BTC worth millions. So where does BTC go from here? Traders were hopeful BTC could stem the fall around the $55,000 level, but sellers have breached this point as well, driving the price down to $54,640 during the ongoing session. If BTC can recover and push above $55,000 toward the 200-day SMA, we could see prices stabilize. However, if it is unable to climb back above $55,000, a much more significant drop could be on the horizon.
Source: TradingView
A look at the RSI could give us an idea of future BTC price movements. The RSI has entered oversold territory, which indicates a potential recovery, at least in the short term.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has lost the crucial $3,000 support level in today’s session, in developments that demonstrate the strong bearish sentiment prevailing in the market. Investors had been hopeful of a bullish reversal as the Ethereum ETF nears launch. However, recent price actions have thrown a spanner in the works. The cryptocurrency has lost a staggering 10.77% over the past 24 hours, slipping below a crucial support level.
ETH failed to move above the $3,500 level on Monday, encountering strong resistance. The price dropped marginally on Tuesday, falling to $3,418. Wednesday saw selling pressure intensify, as ETH dropped by 3.64% to $3,293 and slipped below the $3,300 support level. Bearish sentiment continued to dominate the market on Thursday, with ETH dropping over 7% and dropping to $3,059, closing just above a crucial support level at $3,000. Market watchers were hopeful the support would hold, but bears continued to push the price down as ETH slipped below this level during the current session. Currently, ETH is trading at $2,848, down by almost 7%.
Source: TradingView
If buyers can push ETH back above $3,000, we could see ETH move towards the $3,100 and $3,300 zone. However, if selling pressure continues, the price could continue to drop. Looking at the RSI, we can see that it has made its way into the oversold region, pointing to a recovery, at least in the short term. This means we could see ETH return to $3,000.
Solana (SOL) Price Analysis
Solana (SOL) has endured a torrid week, having lost almost 14%, with the price firmly in the red during the current session. SOL was extremely bullish until Tuesday, when it rose to $153.86, pushing above the crucial $150 level. However, it faced rejection at the 50-day SMA, and with a broader market correction taking hold, slumped by 8.53% on Wednesday and dropped to $140.74. Wednesday saw another significant drop, as SOL fell by over 9% to $127.85. This drop also saw SOL slip below the 200-day SMA as well. The current session sees SOL down by 2.50% and trading at $124.72. Should SOL continue to drop, we could see the price stabilize around $120, where it has support. A rebound from this level could push SOL back toward the 200-day SMA.
Source: TradingView
Polkadot (DOT) Price Analysis
Polkadot (DOT) has plummeted by 15% over the past week as bears tightened their grip on the market. DOT had dropped to a day low of $4.92 during the current session but has since registered an increase and climbed back above $5. On Tuesday, the cryptocurrency had risen to $6.52 but encountered strong selling pressure at these levels. As a result, it dropped by almost 7% on Wednesday, closing just above $6. However, sellers continued to control the market, leading to DOT dropping by 8.57% on Thursday. This led to it going below $6 and the 20-day SMA and settling at $5.55, just above the $5.50 support level.
Source: TradingView
The current session sees DOT down by almost 4%, having lost the $5.50 support level. DOT had dropped to a day low of $4.92 but has pushed back above $5, indicating strong buying demand at lower levels. If buyers can reclaim $5.50, we could see DOT consolidate before making a push for $6.
Toncoin (TON) Price Analysis
Toncoin (TON) has plummeted over 11% during the past 24 hours, dropping below the 50-day SMA and the crucial $7 level. TON was quite bullish at the start of the week, in line with the rest of the market. It reached $8.09 on Tuesday, but sellers pushed the price back down on Wednesday, as TON dropped back below $8 to $7.91. Thursday saw a drop of almost 10%, as TON dipped below the 20-day SMA and settled at $7.14, just above the 50-day SMA, which acted as a level of support. However, TON slipped below the 50-day SMA during the current session, as bears drove the price below $7. TON is currently trading at $6.59, down by almost 8%.
Source: TradingView
As we can see from the price chart, TON had reached a day low of $6.38 before climbing to its current level of $6.58, indicating demand at lower levels. Should TON recover during the current session, it must retake the $7 level for a sustained recovery. A continuation of bearish sentiment could push the price to $6.
Shiba Inu (SHIB) Price Analysis
The meme coin market has also felt the repercussions of the recent market decline, with Shiba Inu (SHIB) registering a significant drop this week. The meme coin has lost almost 18% in the past 24 hours. SHIB had been unable to push above $0.000017 and fell by 5.05% on Wednesday to $0.0000163. Selling pressure intensified on Thursday with the entire crypto market undergoing a correction, and SHIB fell by almost 11%, dropping to $0.0000146. The current session sees SHIB down by 8.61%. If the price continues to drop, we could see SHIB drop to $0.000013, where buyers could enter the market. A drop below this level could see a significant fall.
Source: TradingView
Litecoin (LTC) Price Analysis
Litecoin (LTC) has seen an astonishing drop this week, falling by almost 20% over the past 7 days. While the beginning of the week saw considerable positive movement and sentiment, the failure to stay above $75 and a marketwide correction has led to LTC plummeting. The cryptocurrency registered a drop of 5.11% on Wednesday, going below the 20-day SMA and settling at $72.09. Thursday saw an even larger drop as LTC fell below the crucial support level of $70, dropping to $65.41.
Source: TradingView
LTC is down by almost 11% during the current session, having reached a day low of $56.83. It is currently trading at $58.37, having rebounded from its day low. If the price rebounds, we could see LTC climb back above $60, which could indicate the presence of buyers at the $55 level. Looking at the RSI, we can see that LTC is firmly in the oversold region, and we could see a short-term recovery and the possibility of the price moving back above $60.
Cosmos (ATOM) Price Analysis
Cosmos (ATOM) failed to move past the 20-day SMA on Monday despite registering a 1.12% increase. The asset had been trading between this resistance and support levels. However, after a marginal drop on Tuesday, sellers pushed ATOM below its support level of $6.50, with the price settling at $6.37. Thursday saw ATOM continue to drop, registering a drop of over 6% and dropping below $6 to settle at $5.99. The current session sees the price down by a staggering 11.24%, with sellers firmly in control.
Source: TradingView
However, as seen from the price chart, ATOM has managed to recover from a day low of $5.06, indicating demand at around the $5 level. The RSI also indicates that a recovery is on the cards, having fallen into the oversold region. If ATOM sees upward price movement, we could see the price push above $5.50. A close above this level could fuel a push towards $6.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
