The price of Bitcoin stopped its correction on Monday, finding support at the level of 3,850 USD. However, the cryptocurrency market wiped out almost 11 billion USD on Sunday, after most of the coins decreased significantly.
Altcoins like Ethereum, Litecoin and Bitcoin Cash registered loses of almost 15%, while EOS dropped by even 21%. Stellar and TRON also has a double-digit drop.
On February 24, following an impressive short-term rally, the cryptocurrency market value fell by about 11 billion USD from 141 billion USD to 130 billion USD.
Several analysts earlier suggested that Bitcoin will find serious resistance at 4,200 USD, where serious sellers will appear.
However, according to the analysts, the Altcoins are starting the final adjustment phase. In the short term, there is an opportunity for the market to continue its recovery.
The interest in the market is minimal, as can be seen from the relatively low volume of traded cryptocurrencies. Before the Bitcoin breaks the decisive level of resistance to 4,200 USD, the cryptocurrency will remain vulnerable to fall to around 3,000 USD. Investors may have been too excited about the breakthrough in the resistance level, which has led to the market’s adjustment.
Although the magnitude of the sudden drop in Bitcoin’s price surprise investors, the cryptocurrency dropped sharply below the 4,000 USD resistance level that was struggling to overcome for months.
Bitcoin price analysis
Last week, the Bitcoin was traded on a new monthly peak of 4,189 USD, where sellers appeared. It seems that the price has been dropped close to the resistance of 4,190 USD. As a result, there was a sharp bearish response below the 4,150 USD and 4,100 USD support levels. The sellers gained strength and pushed the price below the key support level of 4,000 USD.
During the fall, there was a break below the main upward trendline of 3,940 USD. The cryptocurrency even came under the support of 3,900 USD and a 100-hour simple moving average (SMA).
Finally, there was a breakthrough under the support of 3,700 USD and the price came to 3,600 USD. A new weekly bottom was formed at 3,624 USD, but later the price moved up.
The current price action is downward and it looks like the asset will trade below 3,860 USD. However, the main resistance is close to 3,900 USD. Additionally, the 50% Fib rate of the recent drop from 4,189 USD to 3,624 USD is close to the 3,910 USD level.
Over 3,900 USD, the price of Bitcoin may face the resistance near 3,950 USD and the 100-hour SMA. More importantly, a breakthrough over the main resistance of 4,000 USD will not be easy.
Ethereum price analysis
Last week there was an upward move of Ethereum over the resistance of 140 USD and 150 USD. The cryptocurrency even climbed over the 160 USD resistance. It was trading close to the resistance level of 166 USD, where sellers appeared. More importantly, there was a strong rejection marked near resistance levels of 165 and 166 USD.
Then the price started moving sharply below the support level of 160 USD. The strong decline overcame the support levels of 152 USD and 150 USD. There was a break below the main bullish line with the support of 148 USD.
The Ethereum even slid below 150 USD and a 100-hour simple moving average. Finally, there was a break below the key support levels of 138 USD and 140 USD.
This opened the doors for more losses and the cryptocurrency was trading at 130 USD. A bottom was formed at 131 USD and after reaching it the Ethereum started appreciating.
The initial resistance is close to the level of 23.6% Fib retracement rate of the last decrease from 166 USD to 131 USD. It seems that the previous support area close to 140 USD is likely to act as a strong resistance to buyers. On the upside, the next major resistance is close to 148 USD and the 100-hour SMA. The 50% Fib retracement rate of the last drop from 166 USD to 131 USD is also close to the 148 USD level.