Markets
How much can Bitcoin and Altcoins go down?
With a 1% drop last night, Bitcoin price struggles to stay above the $66,000 level and the bearish influence on altcoins increases. Amid growing supply pressure, the cryptocurrency market crash intensifies putting further pressure on support zones.
Currently, the total market capitalization of the cryptocurrency world, excluding Bitcoin, has fallen close to $1 trillion. This indicates a decline of nearly 10% in 10 days and suggests a continuation of the broader market’s inability to reverse sentiments.
Furthermore, with over $800 million in long liquidations over the past five days, the cryptocurrency market is gaining downward momentum. Will the cryptocurrency market see a resumption of the uptrend this month or will the collapse continue for Bitcoin and altcoins?
Check out our analysis of the cryptocurrency market crash to determine how low Bitcoin and altcoins can go.
Bitcoin, the biggest crypto eyes $58,165 if supply persists
By falling below the support trend line, the BTC price struggles near the $66,000 level at the 23.60% Fibonacci level. With this reversal, the chances of a bullish breakout of an inverted head and shoulders pattern are reduced to zero.
According to trend-based Fibonacci levels, a breakdown below the $66,000 level could lead to an intense correction phase. In that case, the downtrend could extend to the psychological threshold of $60,000.
However, the lower rejection in the Bitcoin price hints at a potential bullish return this week. If buying pressure re-emerges to overcome the bearish influence, the cryptocurrency could reach $71,392.
Ethereum Double Top Warns of Collapse
With the broader market turning red as Bitcoin drops to the $66,000 mark, Ethereum’s market price takes a bearish turn. However, with a Morning Star pattern and an intraday rise of 1.60%, the ETH price it could soon exceed $3,600.
Furthermore, with a bullish crossover in the MACD and signal line, the upside possibilities for Ether increase. On the weekly chart, the uptrend lacks momentum to cross the $3,842 mark, leading to a double top pattern.
With a neckline at $2,807, the cryptocurrency’s downside potential is substantial if the broader market recovery fails.
A failed reversal in Binance warns of a $600 collapse
With a new all-time high at $724, the BNB price the trend shows a rounded bottom pattern in the weekly chart. The bullish pattern forms a neckline at $662 but fails to get a weekly close above it.
Amid the broader market correction, BNB price fails to break the neckline with a weekly decline of 9.69%. This undermines the previous week’s 11.65% engulfing bullish candle.
Currently, the downside finds support at the psychological threshold of $600 and portends a reversal for a breakout. However, a downtrend of the cryptocurrency below $600 will put the $564 level at risk.
Solana below $150 soon to test $125
With a bearish reversal from the $190 mark, increased price rejection leads to a drop below the psychological $150 mark. This week’s 10% drop forms a bearish engulfing candle, a continuation of the long-wick candles of recent weeks.
The bearish crossover in the MACD and the signal lines with the collapse of the Solana market price point to a bearish continuation. Also, as with the Fibonacci level, the drop approaches the 50% Fibonacci level.
However, the cryptocurrency price action anticipates a double bottom reversal at the crucial support level for a price jump to $200.
Will the cryptocurrency market recover?
As the broader market correction persists, buyers hold strong at the crucial support level, preparing for a bullish reversal. Therefore, the double-edged position of the cryptocurrency market could end optimistically with a recovery at the end of June.