Cryptocurrency market sees high volatility with Bitcoin, Ethereum, XRP, and Dogecoin plummeting, resulting in a $3 billion market cap loss. What price levels should investors watch for these assets?
The crypto market has recently been hit by a wave of volatility, leading to a significant drop in the prices of Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE). This volatility underscores the importance of closely monitoring the market’s evolution and adopting a nuanced approach in this ever-changing environment.
The price of Bitcoin recently reached $107,114, before experiencing a 4.23% decrease due to significant selling pressure. In the last 24 hours, positions worth $651 million have been liquidated. Despite this drop, the overall outlook for BTC remains bullish, with potential price targets at $118,000 and $135,000.
From a technical standpoint, the price of Bitcoin surpassed last week’s peak at $105,663 but then faced significant selling pressure from pending buy orders. This resulted in a 4.23% decrease from the new high at $107,114 to a local low of $102,100. It is important to note that BTC could drop to the critical support zone between $100,000 and $99,000.
The 3-day Woodies CCI is approaching the negative zone, historically a pivotal area for a trend reversal. Bitcoin is hanging in the balance. In higher time frames (3 days, daily, and weekly), BTC shows bearish divergences that should not be overlooked.
Even though BTC still seems to be holding steady in the coming days, the next few weeks will be crucial. A break below $92,000 could lead BTC to $89,000 to $82,000.
The strong correlation between altcoins and Bitcoin explains why a decrease in the leading cryptocurrency affects other altcoins as well. Therefore, the recent drop in Bitcoin’s price has led to an 8.76% decline for Ethereum, 5.31% for XRP, and 9.11% for DOGE over the last 13 hours.
Following the recent decline, Bitcoin’s price has generated a bearish “engulfing” candle, negating the 3.23% gain seen on Sunday. Sustained selling pressure could push BTC down to $101,000, a key support level corresponding to the previous high price range. A break below this level could then drive BTC towards the range between $100,300 and $99,800.
For now, BTC is still well within its range and is creating a significant amount of liquidity both to the north and south. It broke the downward trendline overnight, then dropped to $102,000 this morning. However, a new support has formed below $101,500, so BTC could trigger stop losses before or after the market opens.
Although the overall outlook for Bitcoin’s price remains bullish, investors should carefully monitor a potential stabilization of BTC as it enters this support zone. This development could pave the way for BTC’s next record price targets at $118,000 and $135,000.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
