Bitcoin (BTC) bulls have lost the critical level of $65,000 as selling pressure continues to weigh on the price. BTC could continue to fall towards the 50-day SMA, where the price might stabilize. However, persistent selling pressure could lead BTC to drop to $62,000.
The cryptocurrency market is experiencing significant liquidation, with declines in Bitcoin and Ethereum prices causing turmoil in the markets. The cryptocurrency market drop coincided with a broader downturn in the US markets, with the Nasdaq Composite Index recording a decline of over 3%.
Clearings Reported
The cryptocurrency market has recorded over $220 million in long positions and $32 million in short positions liquidated in the last 24 hours. Ethereum (ETH) saw liquidations of $17.5 million, followed by Bitcoin (BTC) with $14.8 million. According to CoinGecko, ETH recorded an 8% decline, while BTC decreased by 2.5%, losing the critical $65,000 level in the process, coinciding with the sharp decline in technology stock values.
Analysts have noted that Bitcoin’s performance often mirrors that of technology stocks and movements in the broader market. Several other factors contribute to the current decline, such as unfolding political developments in Washington, President Biden’s withdrawal from the presidential race, and a potential opportunity for Democrats to re-engage with the cryptocurrency community. Many analysts have suggested short-term instability in the cryptocurrency markets could be expected.
However, long-term prospects remain bullish. QCP, a Singapore-based cryptocurrency firm, maintained an optimistic outlook for ETH, highlighting the launch of Bitcoin ETFs and subsequent high prices. According to the firm, increased institutional interest in ETH could drive its value towards previous highs. Profit reports from companies like Alphabet triggered the recent sell-off. Technology firms reported higher-than-expected capital expenditures, leading to declines in their stock values.
Mt. Gox Creditors Patiently Await
Kraken reported having successfully distributed all funds to creditors of the defunct Mt. Gox exchange. However, the payout had a minimal impact on BTC prices, suggesting creditors are not rushing to book profits.
“Krakenfx successfully distributed #Bitcoin and Bitcoin Cash from Mt. Gox’s estate to creditors. It’s been almost a decade since Kraken was selected by the trustee to facilitate the investigation and return of client funds.”
According to Kraken’s trading volume, creditors are not selling. CryptoQuant’s CEO, Ki Young Ju, noted no significant increase in daily trading volume on Kraken or significant BTC outflows.
“Mt. Gox creditors received #Bitcoin 4 hours ago. Since then, there hasn’t been a significant increase in daily trading volume or BTC outflows on Kraken.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) continued its slide, further strengthened by the significant drop in broader US markets, impacting the cryptocurrency sector. With BTC generally reflecting technology stock performance, it continued to fall, losing the critical $65,000 level in the process. Long-term, BTC remains sandwiched between $56,552 and $73,777, with buying near support and selling near resistance. BTC was bullish over the weekend, climbing to $66,652 on Friday. By Sunday, it had risen above $67,500 but faced significant selling pressure, as seen in the price chart.
The current week started with BTC showing significant volatility, as buyers attempted to push the price above $68,000, and sellers staunchly defended the level. Ultimately, BTC recorded marginal declines, settling at $67,597. Bearish sentiment intensified on Tuesday as sellers took control of the market. As a result, BTC declined by 2.52% and settled at $65,894. Buyers attempted recovery on Wednesday as BTC climbed to a daily high of $67,117. However, they couldn’t sustain momentum, and BTC decreased by 0.75% to $65,397. The current session sees BTC continuing to fall, with the price down by 1.76% and trading at $64,275.
Source: TradingView
If BTC continues to fall, the 50-day SMA could come into play and bolster the price. If this level is breached, we could see a decline to $62,000 or even $60,000. However, if BTC rebounds, it will attempt to reclaim the $65,000 and $66,000 levels. Currently, sellers maintain control, and bulls must defend critical support levels to prevent a significant downturn.
Ethereum (ETH) Price Analysis:
Ethereum (ETH) has experienced a sharp decline over the past two sessions, dropping 9% in the last 48 hours. ETH had been correcting following the release of spot Ethereum ETFs, but various other factors contributed to ETH’s decline and loss of critical support levels. ETH climbed above $3,500 on Sunday despite facing significant selling pressure, settling at $3,537. However, sellers were active at this level, and ETH saw a significant decline on Monday, dropping 2.67% to $3,443. ETH recovered on Tuesday, rising 1.21% to $3,484. Buyers attempted to push above $3,500, but sellers managed to push the price back down.
The bearish sentiment returned on Wednesday as sellers pushed ETH below $3,400 and the 50-day SMA, opening the door for a significant decline. Indeed, ETH did just that, falling over 4% to $3,336. With a critical support level breached, ETH remains in the red during the current session, declining by 5% and also losing the $3,200 level. ETH’s decline is attributed to various factors, including a significant drop in the broader US markets. Additionally, the initial excitement surrounding the release of spot Ethereum ETFs has waned, with ETH experiencing correction in the market. Looking at the RSI, we can see that bears have the upper hand, and ETH could fall further.
Source: TradingView
Slipping below the 200-day SMA, ETH appears to be on thin ice. If the bearish sentiment persists, sellers could test the $3,000 level. For ETH to recover, it must first reclaim the critical levels of $3,200 and $3,400.
Solana (SOL) Price Analysis:
Solana (SOL) also experienced a decline during the current session, reflecting broader cryptocurrency markets as the downturn in the US markets triggered a domino effect. However, SOL has remained above $170 so far, with bulls defending this level. SOL had a strong weekend and surged to $184.50 by Sunday as buyers tested this resistance level. However, with active sellers, SOL failed to surpass $185 and declined on Monday, marking a 2.96% drop to $179.04.
The bearish sentiment persisted on Tuesday, and SOL continued its downward trajectory. SOL eventually fell by 3.31% to $173.11. Sellers attempted to push SOL below $170, but were unsuccessful, as seen in the price chart. With buyers stepping in around $170, SOL rebounded on Wednesday and made another push towards $180. However, it failed to maintain momentum, and sellers managed to push SOL below $180. Nonetheless, SOL managed to record an increase of nearly 3% to $178.11. Currently, SOL is declining slightly further by over 4%, as sellers attempt to push the price below $170 during the current trading period.
Source: TradingView
However, bulls defended this level as expected, with SOL managing to remain just above $170. Bearish pressures are expected to persist, with broader markets in the red. If the $170 level is breached, SOL could drop to $150. On the other hand, if SOL is able to recover, it could retest resistance at $180 and then at $185.
Polkadot (DOT) Price Analysis:
Polkadot (DOT) saw a significant decline in market interest, with analysts concerned it could lose the critical $6 level for the second time this month. These fears were confirmed this week, as DOT remained in the red amid significant selling pressure. DOT closed the weekend positively, reaching $6.44 despite facing substantial selling pressure. However, with active sellers at $6.50, DOT sharply declined on Monday, dropping by 5.28% to $6.10. This also led to DOT slipping below the 50-day and 20-day SMAs.
DOT remained in the red on Tuesday, declining by 2.95% and slipping below $6 to settle at $5.92. With no apparent end to selling pressure, DOT continued its decline on Wednesday, dropping by 2.87% to $5.75. Currently, DOT remains in the red during the current trading period. Sellers managed to push DOT to a daily low of $5.57. However, buyers were able to push from these lower levels, possibly indicating some demand, and push DOT back to $5.70, although DOT remains 0.87% below yesterday’s levels.
Source: TradingView
So, where is DOT heading from here? If DOT can stabilize around $5.50, it could push towards $6 in an attempt to reclaim that level. However, if sellers continue to push DOT lower, we could see a decline towards $5. Technical indicators present a rather gloomy picture for DOT. The Sharpe ratio of the asset is currently -0.99, suggesting DOT may not be able to offer significant short-term gains. DOT’s social volume has also reported a decline, indicating lack of interest in the asset at this moment. The RSI also suggests that sellers are currently in control.
Ripple (XRP) Price Analysis:
Ripple (XRP) made a strong recovery following a 9% drop on July 18th. Bears attempted to push the price below the $0.57 support level but were unsuccessful. XRP managed to recover from its support level and rose to $0.60 by Monday. XRP fell back into the red on Tuesday as sellers tried to push the price below its support level once again. However, buyers were able to hold their ground, pushing XRP back to $0.59. Markets strengthened on Wednesday as bulls attempted to surpass resistance at $0.65.
Source: TradingView
The current session sees XRP down by 1.10%. Sellers attempted to push XRP below $0.57, but buyers managed to hold their ground and push the price back up. If XRP can reverse the bearish sentiment, we could see a move towards $0.64 in the near future. A break above this level could open the doors for a push towards $0.70. To avoid such a scenario, sellers need to defend the resistance at $0.65 and push XRP below $0.57.
Performance Price Analysis (RNDR):
Render (RNDR) spent the current week in the red after pushing above $7 on Sunday. The price faced significant resistance at this level and as a result, declined significantly. Monday saw RNDR drop by 8.55%, closing the session at $6.56. Sellers attempted to push the price below $5 on Tuesday, with RNDR facing significant selling pressure as seen on the price chart. However, markets rebounded at lower levels and pushed the price back above the 20-day SMA to $6.50, a 1.01% decline compared to Monday.
Source: TradingView
Bears managed to push RNDR below $5 on Wednesday, as the price dropped to $6.20 after a 4.58% decline. Currently, RNDR is decreasing slightly more than 3%, as sellers attempt to push the price below $6.
BONK Price Analysis
The meme coin BONK based on Solana continued to decline, with analysts predicting it will stabilize around the $0.000026 level, where there is significant liquidity. BONK spent the current week in the red, falling to $0.000030 after a 7.51% drop. The price continued to fall on Tuesday, as the meme coin dropped to $0.000028 after nearly a 6% decline. Buyers tried to push the price back above $0.000030 on Wednesday, but couldn’t sustain the momentum. As a result, sellers managed to push back, and BONK closed the day at $0.000027 after a 2.69% decline.
Source: TradingView
The current session sees BONK remaining in the red as sellers attempt to push it down to $0.000025. With high liquidity at this level, we could see price recovery. However, with the slowing buying pressure, BONK could fall back into the red after a brief rise.
Disclaimer: This article is provided for informational purposes only. It is not intended nor should it be construed as legal, tax, investment, financial, or other advice.
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