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How low can Bitcoin and Ethereum fall this week?
After the massive bull run that began last September, the cryptocurrency market suffered a crash in the second quarter of 2024. With Bitcoin and Ethereum prices facing a healthy correction in recent weeks, bulls are resting from exhaustion .
Currently, the BTC price is down 15.59% from the all-time high of $73,794 and ETH is down 18.15% from the yearly high of $4,093. Likewise, the cryptocurrency market is down 18.77% from its annual high of $2.721 trillion recorded in March 2024.
As the cryptocurrency market correction continues, will the collapse of Bitcoin and Ethereum lead to new bottom formations? Or will cryptocurrency prices receive strong support for a rebound?
Bitcoin under correction aims at $60,000
With a bearish reversal from the dominant resistance trendline, the BTC price it has decreased by 12.43% in the last 18 days. The breakdown breaks above the 50-day EMA and leads to a new secondary resistance trendline.
With the cryptocurrency market undergoing a correction, BTC price continues to resonate above the $60,000 support and overall trend line. This prolongs the flag pattern but weakens the possibility of a breakout.
Currently, Bitcoin price is trading at $62,219 with an intraday decline of 1.50% creating another bearish candle. Furthermore, over the past 21 days, CryptoQuant data shows a long liquidation worth $382 million.
As the price of cryptocurrencies declines, pressure on the $60,760 support increases. In case of a breakdown, BTC price may test the 200-day EMA at $57,971.
However, reversal possibilities are significant with bullish divergence as the RSI line approaches the oversold zone. With this reversal, Bitcoin price may soon break out of the descending trend line and break above the 50-day EMA.
Therefore, a bullish trend reversal could reach the $68,823 mark.
Ethereum collapses close to $3,000
In the midst of the cryptocurrency market crash, the falling wedge breakout has recovered Ethereum takes a bearish step back. The sudden increase in supply near the psychological $4,000 mark is in line with the broader market collapse.
The ongoing pullback continues in a range-based trend, with increased supply leading to collapses. Furthermore, the ETH price breaking above the 50D EMA leads to a downtick and warns of a death cross if the fall continues.
However, on the daily chart, a long-term supportive trendline is poised to provide a bullish return. Additionally, the 200-day EMA aligns, increasing the chances of a reversal for the cryptocurrency.
Cryptocurrency Market Weakness Visible in ETH/BTC
On the weekly chart of ETH/BTC, a descending channel dominates the trend, with a death cross being a bearish signal of a moving downtrend. With this technical setup, the weakening of Ethereum’s position against Bitcoin is becoming intense.
As Ethereum, the leading altcoin, shows signs of weakness, it could have a ripple effect on the cryptocurrency market. A bearish continuation within the descending channel can lead to a decrease in confidence among investors, causing capital to shift into Bitcoin or even out of altcoins altogether.
How much will cryptocurrency prices drop?
After the bearish week, Bitcoin and Ethereum prices are approaching the crucial support levels of $60,000 and $3,000. Therefore, a drop below these critical levels will prolong the bearish continuation. However, technical indicators with high demand at these crucial support levels could lead to a bullish reversal in the cryptocurrency market.