Ethereum, Altcoins Drop Against Bitcoin Amid Risk Asset Seloff, Strong USD
Bitcoin price is following a bearish path below the USD 32,000 pivot level. BTC even broke the main USD 30,000 support zone. The price is currently (04:23 UTC) moving lower and it could even test the USD 28,000 support in the near term.
However, BTC is the best performing major cryptoasset today as almost all top 100 cryptoassets dropped even more.
ETH is down 8% and it even broke the USD 1,750 support zone. XRP declined 10% and it even tested the USD 0.520 support zone.
Meanwhile, stocks, bond yields, and even commodities are all falling.
“There have been increasing concerns about COVID-19 and how it might hamper the current maximum capacity recovery that we’re seeing, concerns that have been infiltrating the bond market these last few weeks and have now spilled over into stocks,” Mati Greenspan, Founder and CEO of Quantum Economics, wrote in his newsletter, adding that “another headwind for risk assets at the moment is a stronger US dollar.”
According to Greenspan, for BTC, a stronger dollar outlook, especially against a falling crypto market, means that more people will likely prefer to hold the buck, at least for the time being.
Total market capitalization
In the past three sessions, bitcoin price moved below the USD 32,000 and USD 31,000 support levels. BTC even broke the USD 30,000 support level to move further into a bearish zone. The price is now showing bearish signs and it could test the USD 28,000 support level. The next major support for the bulls is near the USD 25,000 level.
An immediate resistance on the upside is near the USD 30,200 level. The first major resistance is now forming near USD 31,000, above which the price could revisit USD 32,000.
“The Bitcoin network is currently settling USD 5.3bn/day compared to the USD 15.5bn in daily volume settled at the 2021 peak. This demonstrates relatively low demand for value settlement remains in place. Of the transaction volume that is being settled, a dominant majority appear to be coins realizing losses,” crypto analysis firm Glassnode said yesterday.
As reported, by the end of this year, BTC may hit the USD 66,000 level, as well as rise above USD 400,000 by the end of 2030, according to the median price prediction by 42 industry players, surveyed by a comparison platform and information service Finder. However, as to how low they expect BTC to fall in this cycle before prices start to increase, Finder found that the panel expects BTC to drop as low as USD 25,112, which is an average of forecasts from 23 panelists who answered this question.
Ethereum price also took a similar path and it extended its decline below the USD 1,850 support. ETH even broke the USD 1,800 level and it is approaching the USD 1,700 level. Any more losses could lead the price towards the USD 1,650 level in the near term.
If there is a fresh recovery, the price might face resistance near USD 1,800. The first major resistance for a steady recovery is now near the USD 1,850 level.
ADA, LTC, DOGE, and XRP price
Cardano (ADA) is down 10% and it even broke the USD 1.10 support level. ADA is now testing USD 1.05. The next major support is near the USD 1.00 level. If the bears clear USD 1.00, there could be a sharp decline towards the USD 0.88 level in the near term.
Litecoin (LTC) declined over 10% and it broke the USD 112 support. LTC is now testing the USD 105 support. The main support is near the USD 100 level. A downside break below the USD 100 support could push the price towards the USD 92 level.
Dogecoin (DOGE) extended its decline below the USD 0.180 support level. It even broke the USD 0.165 support and it is now showing bearish signs. If there is a break below USD 0.150, the price might test the USD 0.120 level.
XRP price accelerated losses below the USD 0.55 support level. It even spiked below USD 0.520. It seems like the price may soon test USD 0.50. If there are more downsides, the bears might aim for a test of USD 0.42 in the near term.
Other altcoins market today
Many altcoins declined over 10%, including XEM, FLOW, MDX, STX, KCS, ENJ, DCR, KSM, MANA, RUNE, TFUEL, SC, MATIC, DOT, ZIL, and COMP. Out of these, XEM declined almost by 25% and it traded below 0.12.
Overall, bitcoin price is gaining bearish momentum below USD 30,500 and USD 30,000. If BTC settles below USD 30,000, the price might decline towards USD 25,000 in the near term.