In the wake of the worst selloff since the FTX crisis, Bitcoin finds itself seeking a support level after a tumultuous week. Trading below $26,000 over the weekend, the cryptocurrency faced bearish market sentiment following reports of SpaceX liquidating its bitcoin holdings. Ethereum, on the other hand, remained below the $1,700 mark. With Bitcoin experiencing its largest one-day decline since the collapse of FTX, reaching a low of $25,668.92, traders are eyeing a potential breakout below $25,000. Meanwhile, Ethereum saw a marginal rebound after falling below $1,600, but uncertainty still looms as it stands at a weak point not seen since March.
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Bitcoin
Bitcoin’s Biggest One-Day Decline Since FTX Collapse
Bitcoin had a challenging start to the weekend, as the cryptocurrency experienced its largest one-day decline since the collapse of FTX. Bitcoin dropped to a low of $25,668.92 on Saturday, less than 24 hours after reaching a high of $26,598.65. This decline brings bitcoin close to its two-month low, with some traders anticipating a breakout below $25,000. The relative strength index (RSI) currently stands at 18.56, deep in bearish territory. This level of RSI has not been seen since January last year during the so-called “crypto winter.” If further declines occur, the next target could be a support point at $24,900.
Bitcoin Drops to Two-Month Low
Bitcoin’s recent decline has brought it close to its lowest price level in two months. The cryptocurrency dropped to $25,668.92 on Saturday, marking a significant decrease from its recent high of $26,598.65. The bearish sentiment in the market has contributed to this downward trend. Traders are closely watching the price movement and are targeting a potential breakout below $25,000. If this level is reached, it could indicate further downside for bitcoin.
RSI in Bearish Territory
The relative strength index (RSI) for bitcoin is currently at 18.56, indicating bearish market conditions. The RSI is a technical indicator used to measure the strength and momentum of an asset’s price movement. A reading below 30 is typically considered oversold, suggesting that the asset may be undervalued and due for a potential rebound. However, with the RSI for bitcoin currently deep in bearish territory, at its lowest level in over a year, it suggests that selling pressure is dominating the market.
Targeting Breakout Below $25,000
Traders are closely observing the price movement of bitcoin, with many targeting a potential breakout below the $25,000 level. A breakout is a significant movement in the price of an asset, typically accompanied by high volume and increased volatility. If bitcoin’s price drops below $25,000, it could signal further downward movement and potentially trigger a more significant sell-off. Traders and investors are monitoring this level as a potential turning point for bitcoin’s price trajectory.
Possible Support Point at $24,900
If bitcoin’s price continues to decline, there is a possible support point at $24,900. A support level is a price level where buying pressure is expected to outweigh selling pressure, preventing the price from dropping further. Traders often set their buy orders at support levels, anticipating a bounce-back in price. If bitcoin reaches this support point, it could provide a temporary halt to the downward movement and potentially act as a catalyst for a reversal in the price trend.
Ethereum
Marginally Higher Price Rebound
Ethereum saw a slight price rebound on Saturday, recovering from a recent move below $1,600. After reaching a high of $1,695.45 on Friday, Ethereum dropped to a low of $1,644.93 to start the weekend. Despite the decline, the price managed to marginally recover, signaling some resilience in Ethereum’s market. Traders and investors will be closely watching the price movement to determine if this rebound is sustainable or if further downside is expected.
Recovering from Recent Move Below $1,600
Ethereum experienced a recent move below the $1,600 level, which led to a temporary decline in its price. On Thursday, Ethereum dropped to a low of $1,540, marking its weakest point since March 12. This price level was last seen when Ethereum was trading below $1,459. The recent recovery from the low indicates that there is still buying interest in Ethereum, despite the bearish sentiment in the market. Traders will be assessing the strength of this recovery and monitoring for any signs of a potential reversal in the price trend.
Weakest Point Since March 12
The recent drop in Ethereum’s price brought it to its weakest point since March 12. Ethereum traded below the $1,540 level, indicating a period of increased selling pressure. The weakness in Ethereum’s price can be attributed to various factors, including market sentiment, overall cryptocurrency market conditions, and specific news events that may have affected investor confidence. Traders and investors will be closely watching the price movement to assess if Ethereum can regain its strength or if further downside is in store.
Downward Trend for 10-Day Moving Average
The 10-day moving average for Ethereum is currently trending downward, indicating a bearish market sentiment. The moving average is a commonly used technical indicator that smooths out price data over a specified period. A downward trend suggests that the average price of Ethereum over the past 10 days is decreasing, pointing to a potential continuation of the bearish price movement. Traders will be monitoring this indicator to determine if there are any signs of a possible trend reversal in the near future.
Firm Floor Around $1,660
Despite the recent price decline, Ethereum seems to have found a firm floor around the $1,660 level. A firm floor refers to a price level where buying interest is strong enough to prevent further downward movement. Traders and investors often view these levels as potential support zones, where they may consider entering buy orders. The stability around the $1,660 level suggests that there is resilience in Ethereum’s market, and buyers may be stepping in to support the price. This level will be closely watched to determine if it holds or if further downside is expected.
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