The bears continue to dominate the cryptocurrency markets. bitcoin fell by another 2.9% on Monday, slipping to 3,578 USD. The cryptocurrency wiped out 5% since the beginning of the year, while the drop for the last 30 days is more than 12%.
The other cryptocurrencies are also down today. Ethereum lost 4.3% to 117.30 USD, while Ripple is down by 2.5% to 0.3190 USD. Declines of more than 4% were registered by Bitcoin Cash and Litecoin.
The weakness in the short-term price trend of Bitcoin led the market to demonstrate volatility on the downside. More than 5 billion USD was wiped out of the crypto market during the last 2 days. The total value of the cryptocurrency market fell to 119.179 billion USD.
While cryptocurrencies are not likely to experience a large downward movement in the next 24 to 48 hours, the market still remains gloomy.
Bitcoin price analysis
Bitcoin had a slow and steady growth above the 3,600 USD level during most of the last week. The cryptocurrency even broke the resistance level of 3,700 USD. However, it appears that buyers failed to gain strength above the 3,750 USD level.
As a result, there was a strong downward trend and the price dropped below 3,700 USD and 3,600 USD. The decline was such that the price subsided under the support zone of 3,600 USD and the 100-hour simple moving average (SMA).
More importantly, Bitcoin price broke below the critical bullish trendline with a 3,620 USD support. The sellers pushed the price under the key support of 3,550 USD, opening the doors for more losses.
The bottom is formed at 3,470 USD and the price of Bitcoin is currently being adjusted higher. It moved above the 3,520 USD level and the 23.6% Fibo adjustment rate from the recent drop from 3,729 USD to 3,470 USD.
However, the previous 3,550 USD support now acts as strong resistance. If there is a breakthrough over 3,550 USD, the price may grow near 3,600 USD. This represents the 50% Fibo rate of the recent drop from 3,729 USD to 3,470 USD.
The Bitcoin price has moved to a bearish area under 3,600 USD. While sellers keep control under 3,600 USD and 3,550 USD, there is a risk of more losses under 3,500 USD and 3,400 USD.
Ethereum price analysis
After a decent recovery, the price of Ethereum faced a strong sales interest above 125 USD.
Ethereum formed a peak near the level of 126 USD and later began a sharp decline. It broke support of 122 USD and a 100-hour simple moving average (SMA). The decline was crucial because the price broke support levels of 120 USD and 118 USD, moving to the bearish zone. The sellers even pushed the price below 115 USD, and a new weekly bottom was formed at around 113 USD.
Later the price began to consolidate losses above 113 USD and adjusted by a few points higher. It moved above the 23% Fibo adjustment rate on the recent decline from 124 USD to 113 USD.
However, previous support at the 118 USD level acts as strong resistance. Also, the 50% Fibo retracement rate of the recent drop from 124 USD to 113 USD is close to 118 USD.
More importantly, there is a large downward trend, formed with a resistance of 121 USD. The price of Ethereum apparently moved to the bearish zone below 120 USD and the 100-hour SMA. While trading below 118 USD and 120 USD, there is a risk of further losses. Next support is 110 USD and 106 USD.