The collapse of Bitcoin price below the essential 200-weekly moving average (WMA) has sparked a massive sell-off in the broader crypto market. Within the past 24 hours, BTC’s price briefly dipped under $26,100, following a decline of more than 5%. Simultaneously, Ethereum (ETH) experienced a similar plunge, falling over 5% to below $1,750, creating turmoil throughout the market.
Bitcoin’s consistent slump over seven days highlights the failure of the flagship cryptocurrency to maintain support levels. Several factors—including macro factors, crypto market uncertainty, meme coin season, and liquidity issues—have applied immense selling pressure on its price. The problems persist in May, with both traditional and crypto markets on tenterhooks.
Technical indicators such as Bollinger Bands and RSI echo the weakening momentum of Bitcoin’s ascent, with predictions of a potential fall to $24,600. In the 1-hour and daily timeframe, BTC price already hints at further drops, with the RSI at 34, indicating weakening strength in Bitcoin.
On the other hand, Ethereum’s performance against Bitcoin reveals a lack of vigor, with altcoins undergoing a correction. ETH/BTC failed to break the 0.069 level and ignite an altcoin season, falling to 0.066 in recent days. In a disquieting development, the implied volatility (IV) for ETH has plummeted, with ETH short-term IV hitting an all-time low across all terms. This raises concerns that Ethereum’s price could fall to $1,500 if it breaches vital support levels.
While the information presented points to a bearish outlook for the cryptocurrency market, it is essential to consider the author’s personal opinion and current market conditions. Investors should carry out thorough market research before delving into cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial losses. In a fast-paced and ever-evolving financial landscape, it is prudent to stay informed and cautious, closely monitoring the volatile nature of cryptocurrencies to make sound investment decisions.
Source: Coingape
