Bitcoin and Altcoins Correct Sharply, Crucial Supports Nearby
- Bitcoin price declined over 15% and traded close to the key USD 32,500 support.
- Ethereum declined 20% and tested the USD 1,000 support, XRP tested the USD 0.255 support.
- The majority of smaller altcoins also suffered a double-digit loss.
After struggling to gain bullish momentum above USD 40,000, there was a downside correction. BTC declined heavily and traded below the USD 38,000 and USD 36,500 support levels. It traded towards the USD 32,500 support and it is currently (05:00 UTC) recovering towards USD 36,500.
Similarly, there was a sharp downside correction in most major altcoins, including ethereum, EOS, XRP, XLM, LINK, BNB, OMG, NEO, TRX, bitcoin cash, DOT, litecoin, and ADA. ETH/USD declined over 200 and it even traded close to the USD 1,000 level. XRP/USD dived below the USD 0.300 support, but it found a support near USD 0.255.
Total market capitalization
After setting a new all-time high near USD 42,000, bitcoin price started a sharp downside correction. BTC dropped over USD 5,000 and it broke the USD 38,000 and USD 36,500 support levels. There was even a spike below the USD 35,000 support zone and the price traded close to the key USD 32,500 support zone.
It remained well bid above USD 32,500 and USD 33,000. Bitcoin is currently recovering higher and trading above USD 35,000. An initial resistance is near the USD 36,500 level. The main resistance is now forming near the USD 38,000 level.
"It’s to be determined whether this is the start of a larger correction, but we have now seen this parabola break so it might just be," Vijay Ayyar, Head of Business Development at the Luno exchange, told Bloomberg, adding that as BTC has shrugged off recent dips it may potentially recover to as much as USD 44,000 "before the actual correction."
Bitcoin is known for its strong volatility on weekends due to lower liquidity. When there are fewer buyers than sellers it accelerates a price crash.
"People always tout bitcoin as 24/7, 365 liquidity, but what that actually means is you have periods of very thin liquidity," Nic Carter, a partner at crypto-focused venture firm Castle Island Ventures, told Bloomberg in a separate article. "If you want to deploy USD 500m of bitcoin, you probably want to do it during core banking hours."
Ethereum price traded to a new multi-month high at USD 1,350 before it started a sharp decline. ETH declined over USD 200 and it broke the USD 1,120 support level. The price even traded close to the USD 1,000 support before the bulls showed up.
Ether is currently rising and trading above USD 1,100. On the upside, the USD 1,150 level is an initial resistance. To start a fresh increase towards USD 1,350, the price must break USD 1,200.
Bitcoin cash, litecoin and XRP price
Bitcoin cash price surged over 50% in the past few days after it broke the USD 400 resistance. BCH even climbed above the USD 600 level before it faced a strong selling interest. The price is now consolidating above USD 500, with key supports near USD 480 and USD 450. Any more losses could lead the price towards USD 400.
Litecoin (LTC) declined heavily after it broke the USD 172 and USD 165 support levels. LTC even spiked below the USD 140 support and traded close to USD 120. It is currently recovering higher and trading above USD 145. On the upside, the USD 155 level might act as a resistance. The main resistance is now at USD 165, above which it could revisit USD 180.
XRP price followed bitcoin’s decline and it broke the USD 0.300 support level. The price declined 20% and it even tested the USD 0.255 support. The bulls protected the USD 0.255 zone (the last breakout zone). As long as the price is above USD 0.258, it could bounce back to USD 0.300 and USD 0.320.
Other altcoins market today
In the past few hours, many altcoins declined over 15%, including BSV, EOS, NXM, NANO, SNT, AMPL, HBAR, LRC, ICX, MKR, ZIL, XLM, BAND, and STX. Out of these, BSV declined over 30% and it broke the USD 220 support.
Overall, bitcoin price is recovering losses and trading around USD 35,000. Having said that, BTC might struggle to climb above USD 38,000 and there are chances of another dip in the near term.