The cryptocurrency market is grappling with significant declines, and the sharp downturn has reduced the total market capitalization.
- The crypto market cap has declined by over 4% in the last two days. BTC and ETH could fall below key support levels.
The cryptocurrency market is currently experiencing one of its most challenging periods, marked by significant downturns in major assets like Bitcoin [BTC] and Ethereum [ETH]. This recent trend raises uncertainties about the crypto week ahead.
What the current market is saying
The cryptocurrency market is currently facing significant turbulence, with a notable decline in total market capitalization over the last 48 hours.
According to data from CoinMarketCap, the market cap has decreased by over 4%, largely driven by declines in major cryptocurrencies such as Bitcoin and Ethereum.
Detailed analysis revealed that BTC had experienced a sharp decrease of over 26%, while Ethereum saw a steeper decline of over 30%.
These dramatic drops are major contributors to the overall market downturn. Also, BTC maintains a dominance of over 55% in the market, while Ethereum dominates over 16%.
Furthermore, given the recent declines and the ongoing high volatility, the crypto week ahead is filled with uncertainties.
As of this writing, Bitcoin was trading at around $50,800, experiencing a decline of over 12%. Ethereum was trading at approximately $2,260, declining over 15%.
Using the Fibonacci retracement tool, we can analyze the potential price movements for the upcoming week and assess the likelihood of further declines.
Crypto week ahead for Bitcoin
Current analysis indicates that Bitcoin’s price is just below the 23.6% Fibonacci retracement level, which may act as resistance if the price attempts to rebound. The next significant support level is at the 0% retracement level, around $49,467.88.
Source: TradingView
If the price stays above the 23.6% level, it could test higher Fibonacci retracement levels, such as the 38.2% level at $56,847.56 or the 50% level at $59,127.13. Conversely, if the price continues to decline, it may find support near the 0% level at $49,467.88.
What about Ethereum
Analysis indicates that the current Ethereum price is just above the 0% Fibonacci retracement level. If the price breaks below this level, it could signal further downside potential.
Source: TradimgView
Conversely, suppose the price holds above the 0% level. In that case, it might attempt a recovery towards higher Fibonacci levels, with immediate resistance at the 23.6% retracement level ($2,494.46).
This level could act as a key resistance point if the price moves up.
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