Bitcoin has plummeted to its lowest levels since June 2022, trading just above $78,900 on Friday afternoon. This decline represents a nearly 30% drop from its all-time high of nearly $110,000, triggering concerns across the broader cryptocurrency market, which has seen a staggering $1 trillion wiped off its combined market capitalization.
Following this major downturn, insiders are warning of potential “suppression” of Bitcoin prices, prompting traders to exercise caution and avoid the common strategy of “buying the dip.” Analysts are closely monitoring the situation, speculating on how deep this correction might go and whether it could escalate into a full-blown market crash.
As the market sentiment remains bearish, Bitcoin’s value continues to decline, with reports indicating that it has fallen more than 15% this week alone. On Friday, Bitcoin traded at around $79,000 after breaking below the crucial support level of $85,000 earlier in the week. If this trend continues, it could test the next support level at $73,000.
Ethereum (ETH) is also experiencing a downward trend, closing below its daily support level of $2,359. After a nearly 11% drop on Monday, Ethereum’s price further declined, reaching a low of $2,125. Should it close below this level, it might extend its decline to retest the weekly support level of $1,905.
Ripple (XRP) has not been spared from the market downturn, with prices approaching its daily support at $1.96. After a nearly 12% decline on Monday, XRP continued to drop, trading at around $2.03 on Friday. A close below $1.96 would likely lead to further declines toward its February 3 low of $1.77.
The Relative Strength Index (RSI) for all three major cryptocurrencies indicates significant selling pressure, yet suggests that a potential reversal or bounce could be on the horizon. However, traders are advised to remain cautious, as the market dynamics may continue to evolve, and further corrections could occur.
As the cryptocurrency market grapples with these significant price drops, investors are urged to stay informed and assess the risks involved in this volatile environment. The coming days will be crucial in determining whether these declines will stabilize or lead to deeper corrections across the market.
Shogun Lin
