Bitcoin (BTC) continued to drop over the weekend despite a sharp bounce on Saturday, which saw the cryptocurrency climb back above $58,000. However, selling pressure pushed the price back down, with BTC trading around the $55,600 mark.
The sudden drop in the price of BTC can be attributed to a couple of major factors that have led to panic selling, although Saturday’s rebound indicates strong demand at lower levels.
A Market In Panic
Bitcoin (BTC) has dropped to levels not seen since February, as the crypto market slumped across the board. This indicates panic selling among investors, although some, like Blocktream founder Adam Beck, have urged investors not to panic and to buy the dip, stating that the market drop is part of a typical bull market pattern. He said in a post on X,
“Reminder, zoom out. Prior bull runs had half a dozen -30% draw downs too. We’re at about -26% (-27% earlier). In fact, if anything, recent draw-downs seem to be less deep, but people forget the normal bull market pattern. Don’t panic, buy the dip. or buy a bit of $CMSTR with BTC.”
The prevailing market panic could have been triggered by the liquidation of the German government’s Bitcoin holdings. This, coupled with the expectations that a large number of Mt. Gox creditors will be looking to monetize their repayments, has spooked the market. Financial analysts believe that many of Mt. Gox’s former creditors will likely sell their BTC holdings. Data from Coinglass shows that almost $116 million worth of BTC has been liquidated over the past 24 hours. If the selling continues, we could see BTC slip even lower than current levels.
Bitcoin (BTC) Price Analysis
The Bitcoin (BTC) price has continued its slump, hitting a low not seen since February 2024, as sellers drive the price of the asset down. BTC registered a sharp drop on Thursday, falling by over 5% and dropping below the $60,000 mark to settle at $57,097. This drop also saw BTC lose the 200-day SMA, a crucial level during bull runs. Friday saw intense bearish pressure that drove BTC to a low of $53,591. However, BTC recovered from this level, indicating strong demand at lower levels, and rose to $56,742, a drop of 0.62%. The weekend began with an increase of almost 3% as buyers entered the market, pushing BTC above the $58,000 mark to $58,309.
However, with the 200-day SMA acting as resistance, BTC was unable to move past it and dropped by 4.12% on Sunday. The previous week ended on a bearish note and settled at $55,909. The current session saw BTC drop to a low of $54,337 before recovering and moving to its current level of $55,673. The rebound, similar to that of Friday, indicates strong demand at lower levels, which means investors are buying the dip.
Source: TradingView
So, what’s in store for BTC? There are some signs that indicate that it’s not all doom and gloom on the horizon. Thanks to demand, sellers are finding it difficult at lower levels, and bulls are trying their best to reclaim $56,000. With BTC recovering from $54,000 twice, it could act as a level of support, allowing buyers to enter the market. If buyers can control the session, we could see them retest the resistance at the 200-day SMA. If it can close above this level, we could also see a push toward $60,000. The RSI is also close to the oversold zone, indicating that we could see a relief rally.
Should sellers continue to exert control and breach the $54,000 level, a slide toward $50,000 is not out of the realm of possibility.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has been trading between $2,800 and $4,100 since March, as can be deduced from the price chart. The asset experienced considerable selling activity towards the end of the previous week, dropping by 3.65% on Wednesday and settling at $3,291. The price continued to drop on Thursday, falling by over 7% to $3,059. Thursday’s drop also saw ETH slip below the 200-day SAM. Friday saw ETH slip below the crucial $3,000 mark, as it slipped to $2,983. This was after ETH faced considerable selling pressure and dropped to a day low of $2,824 before sellers were able to push the price back up.
ETH was positive on Saturday, registering an increase of almost 2% to push back above $3,000 and settle at $3,069. However, it was back in the red on Sunday as selling pressure above $3,000 pushed the price back in the red, registering a drop of $2,931. The current session sees ETH down marginally as sellers look to push ETH below $2,800. We can see from the price chart that ETH hit a day low of $2,827 before buyers were able to push the price back up. This indicates strong buying demand at lower levels, mirroring what occurred on Friday.
Source: TradingView
The $2,800 level could play a crucial role, acting as a critical level of support. If sellers can breach this level, we could see a significant slide that could leave ETH around the $2,500 level. However, should the price recover, it could push back above $3,000 and test the resistance at $3,100. For a sustained push, ETH must push above the 200-day SMA, In such a scenario, we could see the price move towards $3,300, where the 20-day SMA could act as the next crucial level of resistance. Looking at the RSI, it is currently in the oversold territory, meaning we could see buying activity pick up, pointing to a recovery in the short term.
Solana (SOL) Price Analysis
Solana (SOL) has seen considerable volatility in the past week, peppered with significant drops and gains. Wednesday saw a drop of 8.53%, leaving the cryptocurrency just above the 20-day SMA at $140.74. Thursday saw an even bigger drop as SOL fell by over 9%, dipping below the 20 and 200-day SMAs to $127.07. The cryptocurrency faced intense selling pressure on Friday as sellers pushed the price to a day low of $121. However, with support building at lower levels, buyers were able to reverse the trend spectacularly, with SOL rising to $134.40 from this level. Despite this increase, it was unable to push above the 200-day SMA.
Source: TradingView
Bullish sentiment persisted on Saturday, with SOL rising by over 6%, pushing back above the 20 and 200-day SMAs to $143. However, it was back in the red on Sunday, dropping by 7.99% to $131.66. The current session sees SOL trading at $131, with buyers and sellers vying for control. Several factors could dictate the future price movements of SOL. There is strong support at $120, a level tested in the past. This means the bulls will try and defend this level. Should this level be breached, we could see the price slide towards $100.
On the flip side, should buyers push SOL upwards, it could face selling pressure around the $140 level, with the 20 and 200-day SMAs converging.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has seen considerable developments over the past few days. The asset has been down by over 10% over the past month, with the decline driven by several concerns, chief among them being criticism of the Polkadot treasury’s high expenditure. The treasury report claimed that Polkadot would only have two years of budget left if it kept spending at its current rate, prompting considerable criticism from the community. The head ambassador for Polkadot’s treasury, Tommi Enenkel, stated in the report,
“At the current rate of spending, the Treasury has about two years of runway left, although the volatile nature of crypto-denominated treasuries makes it hard to predict with confidence.”
DOT’s recent price troubles have also put considerable stress on the community. The cryptocurrency fell below its support level briefly on Friday, as it tumbled below $5 to a day low of $4.94. However, strong buying at this level pushed the price up significantly, as DOT rose by 2.34% to climb back above $5. DOT surged by almost 10% on Saturday, climbing above $6 and the 20-day SMA to $6.25. However, it faced selling pressure at this level and fell back in the red on Sunday, dropping by 5.44% to $5.91. The current session sees DOT marginally up as buyers look to reclaim $6 and push DOT back above the 20-day SMA.
Source: TradingView
A breakout above $6 could propel DOT towards $6.50, where it could face its next level of resistance. However, should buyers retake the session, we could see another tumble towards $5.
Cardano (ADA) Price Analysis
Cardano (ADA) has had a mixed weekend after registering a sharp drop of over 11% on Thursday, as it slipped below the 20-day SMA to $0.36. Selling pressure persisted on Friday as it fell below its support level, hitting a low of $0.317 before recovering to close at $0.350, indicating strong demand at lower levels. ADA registered an increase of 6.29% on Saturday, rising to $0.372, but fell back in the red on Sunday, dropping by almost 7% to $0.347, once again below the support level. The current session sees ADA up by 1.44% as buyers look to push the price toward the 20-day SMA.
Source: TradingView
Buyers are expected to defend the lower levels ($0.30 and $0.25), so the price could stabilize at these levels. Should ADA recover, its first crucial test lies at the 20-day SMA, which is currently placed at $0.381.
Tron (TRX) Price Analysis
Tron (TRX) has been on a tear since the beginning of June, as it surged from $0.111 on May 31 to $0.127 by July 1. The past month has seen TRX register an increase of over 10%. However, its uptick had registered a bit of a slowdown as it approached a key resistance level at $0.130. As a result, TRX spent Wednesday, Thursday, and Friday in the red after facing significant selling pressure. In fact, TRX reached a day low of $0.120 on Friday, as sellers pushed the price below the 20-day SMA. However, buyers were able to push the price back to $0.126.
Source: TradingView
TRX registered an increase of 2.38% on Saturday, rising to $0.129. However, it was unable to move past $0.130 and slipped back into the red on Sunday, dropping by 4% to $0.124. The current session sees the price up marginally, trading at $0.125. The price chart shows that the bulls are buying the dip, keeping the price above the 20-day SMA. Should they start a rally, we could see the $0.130 resistance tested once again. Should this level be broken, we could see TRX move to a high of $0.135.
Ripple (XRP) Price Analysis
Ripple (XRP) tanked towards the end of the previous week after slipping below the 20-day SMA on Wednesday. Thursday saw the price crash by over 7%, as bears dragged XRP below $0.45 to $0.433. XRP registered a drop of 1.73% on Friday, settling at $0.425 after dropping to a low of $0.381. The long tail indicates investors are buying the dip, and the presence of strong demand at lower levels. XRP made a strong recovery on Saturday from this buying pressure, rising by 5.64% to $0.449. However, it was unable to move above $0.50 and fell back in the red on Sunday, dropping by nearly 7% to $0.41.
Source: TradingView
The current session saw XRP drop to a day low of $0.40 before buyers bought the dip once again, pushing the price to its current level of $0.430, an increase of over 2%. Looking at the RSI, we can see that it had dipped into oversold territory on Friday. If XRP can maintain its upward push, we could see the price rise towards the 20-day SMA, currently at $0.47. However, if sellers retake control, they could attempt to push XRP below $0.40.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.