Bitcoin Price Drops Below $40,000 While Ethereum Drops Below $3,000
Bitcoin price came under heavy selling pressure today which resulted in a breakout of important support levels. The Ethereum cryptocurrency price also broke below a crucial psychological level indicating a change in trend.
- Bitcoin price slips below $40,000 as it fell around 40% from its all-time high of $64,895.
- BTC price breaking below the 200-day moving average (SMA) at $39.818 USD, which is a bearish sign from a macro perspective.
- Ethereum price followed the #1 cryptocurrency as it slipped below $3000 USD after falling 35% from its all-time high at $4380 USD.
Bitcoin Price Rise in Peril
Bitcoin price fell around 11% in 24 hours, falling to $38,514 USD. This movement caused the #1 cryptocurrency to test the demand zone, located between $37,412 to $39,727 USD. Additionally, the 200-day simple moving average (SMA) at $39.820 has also been broken above, a bearish sign as it represents a major trend change. Therefore, investors should closely watch the daily close against the SMA-200 Moving Average on the daily chart.
While the above scenario looks bearish, during its February bull run, Bitcoin price accelerated around the aforementioned support zone and led the surge from $40,000 to $60,000.
Thus, a dip in this barrier will allow more buyers to grab the pioneering cryptocurrency at a discount. Investors can expect a quick bullish reaction that will push Bitcoin price 15% higher to mark the swing low created on May 13 at $45,700 USD.
If the buyers overcome the downside pressure, the price of Bitcoin could rise another 12% to mark $51,572 USD.
Bitcoin (BTC/USD) daily chart
On the other hand, if the sellers go wild and the bulls fail to tame them, the Bitcoin price slide will continue. A convincing daily close below $37.412 will invalidate the bullish outlook and trigger an 8% sell-off to $34.245.
Etheruem price below $3000 USD
The price of the Ethereum cryptocurrency has been in a bull run for several weeks. However, the recent market sell-off has pushed Ethereum price below $3000 USD, an important psychological level. Although this move looks bearish in the short term, altcoin #1 could see a slowdown around the 50-day moving average (SMA) at $2766 USD.
If the bulls come to the rescue, Ethereum price might find itself bouncing back from the level mentioned above. An increase in bullish momentum here could push the price of the smart contract token 23% to $3430 USD, a level of demand that helped the ETH cryptocurrency kick off its bull run in early May.
Ethereum (ETH/USD) daily chart
A break below the 50-day moving average (SMA) is undoubtedly a bearish indicator and could lead to a 13% drop in the daily demand zone from $2106 to $2397 USD. This area is home to the 100 day moving average (SMA) at $2248 USD. Therefore, it is highly likely that the selling pressure will meet exhaustion here, leading to a rapid 50% rally to $3430 USD.
The risk of Ethereum price producing a successful daily close below $2106 would invalidate the bullish outlook and could trigger a 27% crash on the 200-day moving average SMA at $1544 USD.
The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, you should do your own research when making a decision.
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