Crypto Market: Is It Time to “Buy the Dip?”
The cryptocurrency market has started the week with a significant downturn. Over the past 24 hours, Bitcoin briefly dipping below the $87,000 mark. Other major cryptocurrencies have also experienced widespread declines: Solana (SOL) plummeted by over 16%, while Ethereum and XRP both fell by 12%. More than 90% of the top 100 cryptocurrencies by market capitalization are currently in the red.
Data from Coinglass reveals that the total liquidation amount across the cryptocurrency network in the last 24 hours has soared to a staggering 1.06 billion, predominantly from long positions.
Bitcoin: 200-day Moving Average to Determine Future Direction
Tomarket, a chart analyst on TradingView, points out that the daily chart for Bitcoin (BTC/USD) indicates the price is currently in a consolidation phase, oscillating within a defined range (highlighted by the blue rectangle in the chart). This pattern suggests a stalemate in the market, with neither bulls nor bears currently holding a clear advantage.
From a technical perspective, the key resistance zone lies between $100,000 and $103,787. A breakout above this level could potentially trigger a new wave of upward momentum, targeting the $108,734 to $110,266 range. Conversely, immediate short-term support is found between $96,484 and $97,065. A break below this level could amplify selling pressure. Looking at the longer term, the $89,533 to $84,773 zone, which aligns with the 200-day moving average, represents a critical support area and has historically acted as a robust demand zone during trending markets.
The 200-day moving average ($84,773) is identified as a crucial long-term support level. A price retracement to this area might attract renewed buying interest.
In summary, Bitcoin is currently in a consolidation phase. The 200-day moving average is a vital long-term support. Traders should closely monitor price action around these key levels to gauge the market’s next direction.
Ethereum Faces Significant Decline, Market Sentiment Turns Cautious
ETH’s price has broken below the 50-day moving average, signaling bearish momentum. @Manofbitcoin on X platform suggests that ETH support lies between $2,512 and $2,305. A sustained break above $2,919 is needed to confirm an upward trend.
In conclusion, Ethereum is currently facing substantial downward pressure, and market sentiment is becoming increasingly cautious. A potential further decline in ETH’s price could trigger a ripple effect across the altcoin market, and investors should closely monitor key support levels and shifts in market sentiment.
