Today is a sad day in the crypto markets with almost all coins recording significant price falls. Bitcoin has dropped by 3.84% in 24 hours, deeming hopes of reaching the highly anticipated $10 000-mark.
Ethereum, which displayed strong bullish signals throughout the week, has recorded a 4.16% price drop in 24 hours with the coin eyeing $230 if the bulls don’t take action. In general, the crypto market is on a bearish trend with major cryptocurrencies edging to break below their critical support levels, an indication of a further downfall in the coming few days.
Bitcoin Displays “Death Cross” Pattern – To Fall Even Further
Bitcoin MA has today displayed a “Death Cross” on its daily chart as prices continue to dwindle towards $9, 000 with a 24hr trading lows of $8, 988. A death cross has historically signaled falling prices, meaning that the cryptocurrency will fall further. Bitcoin’s 50-day simple moving average (long term MA) today closed above its 20-day exponential moving average (short term MA), confirming a short-term death cross.
With close to $1 billion worth of Bitcoin futures contracts set to expire on Friday, traders should expect increased volatility as well as price instability as traders are rushing to set a favorable price before the expiry occurs. Increased volatility may greatly affect short-term traders and push the price to fall further.
At the moment, Bitcoin is trading at $9, 224.64 with $9, 000 as the critical support level. However, with the Trump Administration rumored to be announcing a second $1 trillion stimulus package, Bitcoin may soon regain a bullish momentum. Nonetheless, a bullish trend will still be faced with several hurdles.
Like Bitcoin, Ethereum has recorded a significant price fall as uncertainty looms the crypto market. This week, Ethereum has been one of the best performing top cryptocurrencies breaking the $240 resistance level trading towards $250. Ethereum has, however, fell below the crucial $240 resistance turned support level trading at $233.56 at press time.
With the flat moving average and the relative strength index suggesting a balance of demand and supply, Ethereum bears are likely to sink the price further below the current support zone i.e., $225.783–$218.331. Consequently, the price could revisit $200 or drop to $176.112
On the upside, if Ethereum breaks the 20-day exponential moving average ($224), the bulls could regain momentum and push the price above $253.556. In case of a breakout and consolidation of price past $255, the price could easily reach upwards of $287.
Other major altcoins, including USDT, BCH, BSV, BNB, XTZ, and CRO, have also recorded a significant price drop in the past 24hrs.