Bitcoin (BTC) continues to decline, but Philip Swift, co-founder of trading suite DecenTrader and creator of data resource LookIntoBitcoin, does not anticipate a deep correction. This is primarily due to factors such as Bitcoin’s halving cycle, which has so far followed a set pattern. According to investor and entrepreneur Alistair Milne, now may be the right time to buy.
However, there could be potential pressure on Bitcoin in the near term due to the relief rally in the U.S. dollar index (DXY). Historically, the DXY has shown an inverse correlation with Bitcoin’s performance. Nonetheless, it is important to consider support levels for major cryptocurrencies in order to attract buyers.
For Bitcoin, a break below $25,250 could open the door to a downside of $20,000. Meanwhile, Ether (ETH) faces pressure as it breaks below the support line, with the price potentially dropping to the 61.8% Fibonacci retracement level of $1,663. For BNB (BNB), a break below $300 could see the price slump towards strong support at $280.
On the other hand, if Bitcoin rebounds from $25,250, bulls could attempt to drive the price above the resistance line. Likewise, breaking and closing above the 20-day EMA for Ether could indicate weakening bearish influence and see the price rise to the psychologically significant $2,000 mark.
Other major cryptocurrencies such as XRP, Cardano (ADA), and Dogecoin (DOGE) all see their own struggles, with potential downsides should important support levels fail to hold. For XRP and Dogecoin, these support levels are at $0.40 and $0.07, respectively. Meanwhile, Cardano’s downside could be seen if the uptrend line is broken, possibly dragging the price down to $0.33 and then $0.30.
Polygon (MATIC) and Solana (SOL) are also facing resistance at $0.94 and the downtrend line, respectively. If these levels are not broken, further downsides could be seen. Polkadot (DOT) and Litecoin (LTC) are similarly struggling, with their crucial support levels at $5.15 and $75, respectively.
In conclusion, while some cryptocurrencies are facing pressure and potential downsides, others present buying opportunities for investors with an eye on support levels. Ultimately, market participants must conduct their own research and carefully evaluate the risks involved in each investment and trading decision.
Source: Cointelegraph
