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Bitcoin experienced a sharp decline, falling to $94,000 from its peak of over $100,000. As the market struggles with a change in momentum, a retracement is looming on the horizon. Although some people may find the price correction concerning, there are important trends and dynamics to keep an eye on that suggest what Bitcoin may do next. The short-term rising trendline that supported Bitcoin during its most recent rally is broken below on the chart.Â
This breakdown implies that short-term bullish momentum is waning. The psychological level of $90,000 and the 50 EMA at $91,798 are the next significant support levels to keep an eye on. If buyers take action, these levels might serve as a buffer against additional drops. The last few sessions have seen a noticeable increase in selling pressure, according to volume analysis.Â
But the RSI, which is at 43 right now, shows that Bitcoin is getting close to oversold territory. Bulls can regroup during this dynamic, which frequently occurs before a possible relief rally or consolidation period. The larger picture shows that Bitcoin is still above its 100 EMA ($82,971), which has historically served as a solid support level during market downturns. The entire bullish structure will continue to exist as long as this level is maintained.
Rebounding above $97,000 would indicate a resurgence and potentially spark a new rally. Looking ahead, Bitcoin’s trajectory will depend on the market’s capacity to maintain important support levels. Should selling pressure persist, the $85,000 zone may be tested by a more severe correction. Bitcoin might, however, stabilize and try to recover $100,000 if buyers regain control, indicating a resurgence of market confidence.
Ethereum tumbles
The price of Ethereum has fallen precipitously from its recent peak of over $4,000 to $3,197. The current state of affairs presents a difficult scenario for the second-largest cryptocurrency, making it difficult for it to regain the $4,000 mark and recover more than 30% of its value. Ethereum is now below important support levels, including the 50 EMA, which was once a powerful bullish indicator as a result of the recent sell-off.
When this level is broken, it indicates that ETH has lost a lot of momentum, which puts the market in jeopardy. The significant trading volume that coincided with the sell-off raises additional concerns because it implies that the market is actively participating in the decline. At $3,033, the 100 EMA provides the next important level of support.Â
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Ethereum may experience additional drops and possibly test the psychological $3,000 barrier if it is unable to maintain this line. To restore investor confidence and pave the way for a possible rally, ETH must rise back above $3,800. At 35, the Relative Strength Index (RSI) suggests that Ethereum is getting close to oversold territory. Bulls may find some hope in this since relief rallies have historically resulted from similar circumstances.
Any upward movement, though, is probably going to encounter strong opposition at the $3,500 and $3,800 levels. In a larger sense, Ethereum‘s market difficulties reflect the mood of the market as a whole, with riskier assets under pressure due to tightening macroeconomic conditions.
Solana under pressure
As its price drops below crucial support levels, Solana is still under a lot of bearish pressure. SOL is currently trading at $183 and is getting close to the 200 EMA at $174, which is frequently a crucial level for determining trends. The asset has a strong bearish outlook because it has been unable to maintain its position above the 50 and 100 EMA’s. As Solana emerged from its descending channel, indicating heightened bearish sentiment, the market saw a spike in volume.
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As selling pressure increases, traders’ increasing agreement about the possibility of additional downside is frequently indicated by this volume spike. More market participants may be adopting a bearish stance as a result of the increased activity during this downward move, which reflects a general lack of confidence in Solana’s performance going forward. This downturn has worrying ramifications.
Solana may test support at $150, a crucial psychological barrier, if the 200 EMA is breached, which could lead to even lower levels. The Relative Strength Index (RSI), which is currently at 31, is getting close to oversold territory but has not yet indicated a definite reversal. This allows for additional downward movement prior to a possible rebound.
Bearish sentiment on the main cryptocurrency markets exacerbates Solana’s difficulties on the larger market stage. Investor confidence may be further damaged if the 200 EMA is not broken, which could result in a protracted bearish phase. But if SOL can maintain this level, it may draw in investors seeking a long-term entry point, which could stabilize the asset.
