The bitcoin price slided below $56K and is now recovering while Ethereum is on the verge to fall below $4k. Following the top cryptos, Many altcoins are down more than 10%. Meanwhile, ALGO, ENJ, SAND, and MANA are up over 6%. MANA is up 16% and it surpassed the USD 4% level.
Bitcoin Price Action
As the cryptocurrency market correction continues to deepen, Bitcoin price has plunged to its lowest levels since mid-October. During the early Asian trading Hours, BTC fell to a monthly low of $55,650. A drop below this level could see the BTC price tumble to the next support zone at $53K.
On a daily closing, 58K seems to be a crucial level. Else we can expect BTC to go to $50K.
Ethereum Price Action
Ethereum price also followed the flagship currency declining heavily below $4,050. The price is currently trading above $4,000. On the downside, initial support is near $3,950. The next support is near $3,880, below which the price might test $3,750.
If the Bulls Managed to enter the pace, the price could face resistance near $4,050. The main resistance is near $4,120, above which the price may possibly rise towards $4,200.
Critical Inflection points for BTC & ETH
Following a downturn that removed roughly $400 billion from the market, according to a widely respected crypto analyst, the top two digital assets by market size are currently teetering at make-or-break levels.
According to the weekly TechnicalRoundUp email, if Bitcoin falls below the $55,800 area and closes the week there, Cred, a pseudonymous analyst, will switch to a bearish position on BTC.
“If the breakout turns into a failed breakout, which would be strongly implied by a weekly close below $55800, then our bias would shift bearish.”
According to the analyst, Etheruem (ETH) just broke its daily rising trend and maybe lost its power on higher time frames as well. He claims that a break below $4,000, precisely $3,952, will force him to turn negative in the medium run.
“Similar to Bitcoin/Dollar, the weekly range high is an inflection point. $4000 is support and it’s intact until proven otherwise. If it’s lost, our bias will be bearish in the short to medium term.”