Bitcoin and Ethereum continue to decline as the global macroeconomic situation becomes more jittery. Due to both cryptocurrencies’ apparent breakdown of critical demand zones, losses might increase.
A total of $110 billion has been lost in the cryptocurrency market over the weekend, placing both Bitcoin and Ethereum in a precarious position.
As of this writing, Bitcoin is trading at $36,665, down 15.5 percent from its previous high of $38,855. Bitcoin was able to cut through a critical region of support during the downturn. Bitcoin may be on the verge of additional losses as the selling pressure looks to be increasing.
On the daily chart, Bitcoin has pierced through the bottom limit of a parallel channel, according to the technical analysis. A severe correction as large as the pattern’s breadth, which points to a target between $29,620 and $28,060, is predicted by this market behaviour. Only a sustained breach of the January 25 low of $32,850 would confirm the dismal prognosis, which is still possible.
With a loss of almost 500 points in market value, Ethereum’s price has fallen by over 15.5% in the last four days. The second-largest cryptocurrency in terms of market capitalization is presently holding above the critical $2,500 support threshold. Significant losses might be incurred by closing below this demand area for three consecutive days.
This symmetrical triangle formation on Ethereum’s three-day chart forecasts a 64.7 percent downswing should the $2,500 support level be broken. For the gloomy view to take hold, it must first pass the Fibonacci retracement line at $2,150. The price of Ethereum may then rise to over $1,720 before falling to around $900.
Bitcoin and Ethereum are likely to see sharp corrections based on current technical circumstances. However, given the volatility of the cryptocurrency market, the pessimistic thesis may be refuted. In order for Bitcoin and Ethereum to hit new highs, they would both need to break past the $3,270 level of resistance.
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