20 Jan 2021 · 2 min read

Bitcoin and Altcoins Turn Red As Bulls Step Back

Bitcoin price is down 6% and it tested the USD 34,000 support. Ethereum declined 10% to USD 1,250, XRP is well above the USD 0.265 support. UMA, AMPL, RSR, and BAND declined over 12%.

Bitcoin price started a downside correction below the USD 36,500 and USD 35,500 support levels. BTC also broke the USD 35,000 level and tested USD 34,000. It is currently (13:00 UTC) recovering, but the bulls could struggle near USD 35,500.

Similarly, there was a bearish reaction in most major altcoins, including ethereum, EOS, XRP, XLM, LINK, BNB, OMG, NEO, TRX, bitcoin cash, DOT, litecoin and ADA. ETH/USD declined over USD 100 and it even tested the USD 1,250 support zone. XRP/USD is down 5%, but it is still well above the USD 0.265 support zone.

Total market capitalization

Source: www.tradingview.com

Bitcoin price

There was a steady decline in bitcoin price after it broke the USD 36,000 level. BTC declined over USD 1,500 and the price even tested the USD 34,000 support zone. A base seems to be forming above USD 34,000 and the price is recovering. An initial resistance is near the USD 35,000 level. The first major resistance is near the USD 35,500 level.

A clear break above USD 35,500 could start a decent increase. On the downside, the USD 34,200 and USD 34,000 levels are important supports.

Ethereum price

Ethereum price declined sharply after it failed to stay above USD 1,350. ETH even broke the USD 1,300 level and tested the USD 1,250 support. The bulls are defending the USD 1,250 and USD 1,235 levels. If there is a fresh increase, the USD 1,320 and USD 1,350 levels could act as a strong resistance.

Conversely, a downside break below the USD 1,250 and USD 1,235 support levels may possibly spark a sharp decline. The next major support is near the USD 1,150 level.

Bitcoin cash, litecoin and XRP price

Bitcoin cash price failed to stay above the USD 500 support level and it even spiked below USD 485. BCH tested the USD 470 level and it is currently recovering. On the upside, the previous support at USD 495 and USD 500 are likely to act major hurdles. A close above USD 500 could open the doors for a fresh increase.

Litecoin (LTC) is down over 10% and it is now trading well below the USD 150 support. LTC is testing the USD 140 support, below which it could even decline towards the USD 132 and USD 130 levels. On the upside, the bulls are likely to face selling interest near USD 150 once again. The next key resistance is near the USD 165 level.

XRP price is stuck in a crucial range above the USD 0.265 and USD 0.255 support levels. There were a couple of attempts to settle above USD 0.300 and USD 0.312, but the bulls failed to retain strength. The price is declining, but the USD 0.265 support will most likely act as a strong buy zone.

Other altcoins market today

In the past few hours, many altcoins declined over 10%, including UMA, AMPL, RSR, BAND, SOL, YFI, KSM, HEDG, UNI, DASH, IOST, ATOM, SUSHI, XTZ, LINK, and COMP. Conversely, HBAR remained in a positive zone after a spike above USD 0.10.

To sum up, bitcoin price is declining and showing bearish signs below USD 35,500. If BTC fails to stay above USD 34,000, there is a risk of more downsides towards USD 32,000.

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