BTC price could see a sharp drop to $80,000 amid a general crypto market crash, while altcoins are facing a huge blow amid Ethereum whale selling.
Liquidations surged to over $1 billion amid a broader cryptocurrency market crash that sent Bitcoin prices all the way down to the $95,000 level.
Altcoins such as ETH, SOL, and DOGE have seen greater selling pressure, with pullbacks of 8-13%. While Bitcoin pullbacks are part of every market cycle, investors are curious about how long BTC's pullback will last.
Will the crash in the cryptocurrency market lead to further declines in BTC price?
BTC is preparing to drop 25% to $80,000
As panic selling intensifies, the cryptocurrency market continues to crash, with Bitcoin's price further declining from the critical support level of $100,000. Cryptocurrency market analysts predict a high likelihood of Bitcoin retracing 25% from its historic high of $108,000. Notable cryptocurrency analyst Rekt Capital stated:
They should take a closer look at the overall 34% retracement from March to August this year for those who believe that there will definitely be no 25% or 30% pullbacks during this cycle. Or the multiple 25% pullbacks that occurred between March and August.
Therefore, if history repeats itself, BTC price may once again retrace all the way to $80,000. Cryptocurrency analyst Rekt Capital warned that Bitcoin may experience a pullback, as the bearish engulfing candle persists on the weekly chart. In a recent article, this analyst emphasized that the key weekly support level of $1.012 million is under pressure and struggling to hold.
The analyst further points out that if this key blue support area fails, combined with Bitcoin's 5-week upward trend (marked in orange), the cryptocurrency may enter a broader correction phase.
Bitcoin's key support level during the cryptocurrency market crash is worth paying attention to
As of the time of writing, Bitcoin price has dropped 4.2% to $96,828, with a market cap of $1.92 trillion. Analyst Ali Martinez pointed out that Bitcoin's key support range is between $98,830 and $95,830. Within this range, about 1.09 million wallets collectively purchased over 1.16 million BTC, further underscoring its importance as a key price level.
Coimnglass data shows that Bitcoin's open interest contracts have fallen by 5%, while the 24-hour liquidation amount surged to $217 million, with $166 million being long liquidations. Despite the current decline, Bitcoin's fear and greed index remains in the "greed" zone with a score of 74.
Market analysts believe that, with the dollar index (DXY) soaring, the adjustment in the cryptocurrency market may continue further. Cryptocurrency analyst Justin Bennett emphasized the importance of tracking global liquidity trends, stating: "Since the rebound from 102.60, 110.00 has been my dollar target, I bet that this area marks the cryptocurrency bottom in early 2025."
Altcoins ETIH, SOL, and DOGE face stronger corrections
ETI loses the key support level of $3,500
In the context of the recent market decline, trading of top altcoins has also performed poorly. ETH price has significantly retraced 9% in the past 24 hours, losing the key support level of $3,550, currently trading at $3,346. Ethereum may test $3,000 again before rebounding.
Additionally, the selling behavior of Ethereum whales has recently intensified. The blockchain analysis platform LookonChain reports that the recent decline in Ethereum's price has prompted large holders to actively sell ETI to pay off debts.
In the past five hours, a whale transferred 22,746 ETH worth $77.7 million to Binance, then withdrew stablecoins to pay off debts to Spark and Aave.
Another whale deposited 49,910 ETH worth $170 million into Binance and withdrew stablecoins worth $137.8 million in the past 8 hours.
However, market analysts remain hopeful for the future. Notable analyst Ted Pillows wrote:
"$4,000 seems to be the new $1,400 for Ethereum. During the 2020-21 cycle, ETH was repeatedly rejected from the $1,400 price level before finally breaking through. Currently, the $4,000 level is experiencing the same situation, but a breakout will soon occur."
Solana price falls below $200
After reaching a high of $263 in November, Solana's price has been consolidating, underperforming other similar altcoins. In today's cryptocurrency market crash, SOL price lost the key support level of $200, currently trading at $193 at the time of writing.
Cryptocurrency analyst Lieutenant Ponzi draws attention to the weekly chart of Solana (SOL), pointing out significant order blocks (OB) and a bullish bat pattern. According to this analyst, the $165-$170 range is becoming a key area of focus, indicating potential resistance or reversal zones for the cryptocurrency.
The crash in the cryptocurrency market led to a 13.5% drop in DOGE price
As of the time of writing, Dogecoin price has significantly retraced 13.5%, rising to $0.31. Thus, the weekly decline of the world's largest meme coin has expanded to over 22%. Coinglass's 24-hour liquidation data shows that open interest contracts have fallen by 20%, with Dogecoin liquidation amount reaching $55 million, of which $44 million is from long liquidations.
Nevertheless, market analysts remain optimistic about DOGE. Market analyst BALO emphasized the key price levels for Dogecoin (DOGE) on a weekly basis.
Analysts state that the weekly closing price must remain above $0.26 to maintain bullish momentum. Furthermore, if DOGE can reclaim the level of $0.42, BALO predicts it may soar to $4, indicating significant upside potential for this popular meme token.
