Ad
News
Cardano, Dogecoin, XRP fall 10% while key Bitcoin metric flashes a favourable sign Cardano, Dogecoin, XRP fall 10% while key Bitcoin metric flashes a favourable sign
šŸšØ This article is 3 years old...

Cardano, Dogecoin, XRP fall 10% while key Bitcoin metric flashes a favourable sign

Bitcoin dropped below the crucial weekly support of $32,500 as bears took control of the price action.

Cardano, Dogecoin, XRP fall 10% while key Bitcoin metric flashes a favourable sign

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Many traders fear that the bear market might officially be here after dropping more than 50% from all-time highs on average.Ā 

Several large-cap decentralized finance (DeFi) tokens, such as Badger, ThorChain, Alpha Finance, and others, have now fallen up to 85% from their 2021 highs.

And the rout continues. As Bitcoin fell 5% in the past day, large-cap cryptocurrencies like Cardano, Dogecoin, and XRP saw double-digit percentage declines, with hundreds of millions of dollars sifted off their respective market caps.

So whatā€™s next for Bitcoin?

The Bitcoin chart looks bearish on all time frames. The big weekly support ($32,500) also broke and further downside is expected this week. It is very likely that the price might dip below the $30,000 daily support.Ā 

That support has been tested a number of times already and in case it fails the next big support is in the $28,000 region.

Image: BTC/USD via TradingView.

It is very possible to see such low levels as the weekly close was bearish. And the last time such a bearish close took place it led to a 40% drop in the price.

The only bullish scenario that can be seen is the formation of a potential falling wedge. But it still needs confirmation and it might take a few days for that.

The Relative Strength Index (RSI) is still not oversold on a daily timeframe, meaning sellers are in control as buyers await lower support levels.

A silver lining, meanwhile, came in the form of Glassnode, a popular on-chain data analysis tool, reporting that Bitcoin outflows from centralized exchanges continue to grow and over 2,000 BTC are withdrawn daily, a metric daily suggesting the assetā€™s accumulation.

Image: Glassnode.

Whatā€™s next for ETH?

Ethereum (ETH), similar to Bitcoin, remains in bearish territory. There are no big supports at the current levels and the support is in the $1,680 region.Ā 

Image: ETH/USD via TradingView.

This means it is very likely that the price will push lower in the coming days and a continued downtrend is possible.

The Relative Strength Index also is headed towards an oversold position. However, the volume looks very flat, indicating a lack of buyer interest.

As Bitcoin looks bearish and a drop is possible it is possible that ETH price falls along with the former and sees lower levels.

Mentioned in this article
Posted In: Analysis, Edge