Total Market Cap
The price of Bitcoin dropped sharply from Tuesday's high of $37,800 to $31,200 this morning, liquidating more than $1 Billion worth of cryptocurrency futures position.
The crypto market is currently in a pullback state as it has been plummeting for the past two days. The price of Bitcoin has been seeing weak (consolidating in a triangle) for the last few days after several attempts to crawl back to the $42K ATH.
Bitcoin bulls reattempted to go push price to the $42k price level after losing over 30% on Jan. 11, but they could only reach 40K before it got rejected back to $34k. The second attempt by the bulls failed to push the price back to the $40k level or beyond as it could only reach $37k.
With Bitcoin forming lower highs as seen in the chart below, the price of Bitcoin is likely to fall back to the $30k price level as analysts called it "the 30% correction."
The 200 EMA (blue MA) is currently being used as a support and a fall below the $30k price could see Bitcoin price to $27K or lower. The price of Bitcoin is trading at $32k at publishing time and looking to fall further as volatility and volume increases. Bitcoin might close below $31K at the end of the week as the fall continues.
According to researchers at Santiment, there is “trader doubt” in the market on whether BTC would hit $40, 000 again. They wrote:
“Thinking face there is an increasing amount of trader doubt that Bitcoin will revisit $40,000. But according to address activity and trade volume, the long-term trend still looks plenty healthy. Keep a close eye on whether $BTC's usage rate stays propped up.”
Ethereum on the other hand hits the all-time high of $1400 on Tuesday but the price failed to stay above the $1300 price level or go higher as it immediately turned around after touching $1400. Things are not looking good at the moment for the price of Ethereum as other cryptocurrencies are plummeting.
The price of Ethereum is way above the 200 EMA on the 4H chart, so the bulls are still in control of the market. Another attempt to reach the ATH is expected before the end of the week, and a failure to reach or surpass the ATH will see Ether fall back to $1200 or below.
Featured Image from Shutterstock Price
Tobi is a full time day/swing trader with 3 years’ experience in the currency and commodity market. He is interested in cryptocurrencies in combination to the current financial system. Tobi holds a bachelor's degree in Agriculture.