Bitcoin's Critical Blow
Even though Bitcoin fell below the critical $65,000 price point, the leading cryptocurrency is still likely to experience a significant rally in the foreseeable future. The next key support level for the asset is currently around $57,000, however, if the current market shows strong buying support, the prospect of BTC reaching $70,000 remains within reach.
There are various reasons for the recent decline in Bitcoin prices, including increased selling pressure from miners and a shift in overall market sentiment toward caution.
The current technical trend shows signs that Bitcoin may rebound. The 100-day moving average (orange line) provides important support at around $64,000. Therefore, the current trend of Bitcoin price is crucial to predicting its short-term trend.
In addition, liquidity analysis is also a key factor. According to the chart, the price range above $70,000 has significant liquidity support. This means that if Bitcoin is able to gather enough momentum, this liquidity may be released, driving the price even higher. Market participants are advised to pay close attention to changes in trading volume.
In addition to technical indicators, improvements in the RSI (Relative Strength Index) and the impact of macroeconomic variables may also signal the beginning of a price reversal. In addition, positive reports on Bitcoin acceptance and clarity in the regulatory environment may further drive prices higher. Therefore, market participants should consider these factors in combination to make informed investment decisions.
Ethereum’s Collateral Damage
Ethereum failed to avoid the blow suffered by Bitcoin, causing the second-largest cryptocurrency on the market to plummet to $3,300, close to its lowest level this month. Only a week ago, ETH had tested this support level, which could be a sign of a possible reversal in the future.
Currently, Ethereum is supported at $3,300, a level that has historically served as a major support point, providing a solid foundation for a possible upside in the future. From a technical perspective, Ethereum appears ready to reverse. The 100-day moving average is acting as a key support, while the relative strength index on the daily chart is approaching oversold levels.
The increase in volume could show signs that buyers are entering the market at this support level, which could push prices higher. If Ethereum can hold this key support level, it could attract more buying interest and set the stage for a potential rebound. Therefore, market participants should pay close attention to these signs to make informed investment decisions when the market reverses.
