Crypto Market Slumps for Third Consecutive Day, Bitcoin Drops Below Key Support
The cryptocurrency market continues to experience a steep downtrend, marking its third consecutive day of losses. Bitcoin (BTCUSD), the market leader, has fallen approximately 12% over this period, crossing below a critical support level not breached in the last 50 days. The current trading range of $89,500 to $90,000 is pivotal, and analysts suggest a further decline of about 2.5% could mark the bottom of this bearish phase.
Bitcoin Faces Unprecedented Pressure
Bitcoin is currently trading at $91,417.29, down 3.81% in the last 24 hours. The breach of the 50-day support level of apx 91700 in Bitcoin Futures is a noted, and now I am eyeing the $89,500-$90,000 range, following the directional bias of "bearish below $94190" analyzed in Bitcoin on ForexLive.com here as a potential zone for stabilization. This level could act as a psychological and technical floor, given the intense selling pressure observed. Contrarians may even want to bet on a Long there, but perhaps some of you want to wait for our next 'Bitcoin analysis for today' .... tomorrow :) ... if Bitcoin futures gets close to $89,500-$90,000
Crypto altcoins staging a bloodbath?
Other major cryptocurrencies have not been spared in this sell-off, with several coins recording significant losses:
Ethereum (ETHUSD): Trading at $3,176.30, Ethereum has dropped 4.52% in the last 24 hours, continuing its multi-day decline. Over the past three days, ETH has shed over 10% of its value.
Dogecoin (DOGEUSD): The meme-inspired cryptocurrency saw one of the largest declines, falling 7.87% to $0.31526. DOGE has been underperforming amid a lack of positive catalysts.
Solana (SOLUSD): Another major loser, Solana is down 7.50% to $182.61. The sharp decline highlights the vulnerability of layer-1 protocols during broader market corrections.
Pepe (PEPEUSD): PEPE has faced heavy selling pressure, dropping 6.19% to $0.000016725. Its recent performance reflects broader market uncertainty around meme coins.
Chainlink (LINKUSD): LINK is trading at $19.27, a decrease of 5.72%. Despite recent partnerships and ecosystem growth, Chainlink has struggled to maintain upward momentum in this environment.
Cardano (ADAUSD): Cardano slipped 6.34% to $0.887, failing to hold critical support levels. ADA’s recent losses have erased its prior weekly gains.
XRP (XRPUSD): XRP is down 4.90% to $2.2562, adding to its three-day decline. The asset’s inability to sustain above key levels has worried traders.
Notable Decliners and Relative Stability
While most cryptocurrencies faced severe declines, Binance Coin (BNBUSD) and Shiba Inu (SHIBUSD) showed slightly more resilience:
Binance Coin (BNBUSD): Down 2.86%, trading at $676.30, BNB has held better than most major altcoins but remains under pressure.
Shiba Inu (SHIBUSD): Despite its meme coin nature, SHIB has managed to limit its losses to 2.16%, trading at $0.00002083.
Outlook for the Coming Days
Market participants are closely watching Bitcoin’s price action around the $89,500-$90,000 range. If this support holds, it could provide a much-needed foundation for a potential recovery. However, a sustained break below this level may trigger further panic selling, dragging the market deeper into bearish territory.
For altcoins, the outlook remains heavily tied to Bitcoin’s performance. Investors are advised to exercise caution and consider partial profit-taking strategies during this volatile period. With no immediate catalysts on the horizon, the market may remain under pressure in the short term.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Trade at your own risk. Visit ForexLive.com for additional views.