The cryptocurrency market started the week with a significant decline, with Bitcoin dropping below $91,000, setting a new monthly low, and Ethereum facing a substantial drop, leading to a cautious market sentiment
The cryptocurrency market started this week with a significant decline, with Bitcoin and other mainstream coins such as SOL, ETH, XRP, and BNB experiencing losses.Author: BitPush
The cryptocurrency market started this week with a significant decline. In the past 24 hours, Bitcoin dropped by 5%, briefly falling below the $91,000 mark, setting a new monthly low. Other major cryptocurrencies also experienced declines: Solana (SOL) fell over 16%, Ethereum and XRP dropped by 12%, while BNB saw a relatively "mild" decline of 6%. More than 90% of the tokens in the top 100 by market capitalization reported losses.
According to Coinglass data, as of the time of writing, the total liquidation amount across the crypto market in the past 24 hours reached $950 million, primarily from long positions, with a total of 314,902 people liquidated globally.
Bitcoin: The 200-Day Moving Average Determines Future Direction
TradingView chart analyst Tomarket stated that the daily chart for Bitcoin (BTC/USD) shows that the price is currently in a consolidation phase, with fluctuations confined to a clear range (the blue rectangular area in the above image). This pattern indicates that the market is in a stalemate between bulls and bears, with neither side holding a significant advantage.
From a technical perspective, the key resistance level is between $100,000 and $103,787. A breakout above this level could initiate a new upward trend, targeting $108,734 to $110,266. On the other hand, short-term support is in the range of $96,484 to $97,065, and a drop below this could trigger more selling pressure. In the long term, the area between $89,533 and $84,773 (the 200-day moving average) is an important support level, historically a strong demand zone in trending markets.
The 200-day moving average ($84,773) is a critical long-term support level, and if the price retraces to this area, it may attract buying interest.
In terms of potential market direction, if the price falls below $96,000, it may indicate increased selling pressure, further probing the $89,533 to $85,000 area, and even breaking below the 200-day moving average could lead to a deeper correction. Conversely, if it breaks above $103,787, it could trigger a continuation of the upward trend, targeting $108,734 and $110,266, and possibly even breaking $120,000 to set a new all-time high.
In summary, Bitcoin is currently in a consolidation phase, with the 200-day moving average being a key long-term support level. Traders should closely monitor the price performance in these critical areas to gauge the market's next move.
Ethereum Faces Significant Decline, Market Sentiment Turns Cautious
One possible reason for Ethereum's poor performance is that some traders previously expected Bybit to buy a large amount of ETH in the open market to cover losses, but this assumption proved incorrect, forcing traders to close their positions.
Data shows that on February 24, the open interest in Ethereum futures dropped from 8.82 million ETH to 8.52 million ETH, indicating that traders are closing leveraged positions. Well-known cryptocurrency analyst Crypto Rover warned on Twitter that if Ethereum (ETH) continues to decline significantly, it could raise concerns about whether the altcoin season can persist.
On-chain data shows that in the past 24 hours, the number of active Ethereum addresses decreased by 7% to 450,000, suggesting that network activity may be declining. From a technical analysis perspective, the ETH price has fallen below the 50-day moving average, indicating bearish momentum. @Manofbitcoin analyzed on the X platform that the support level for ETH is between $2,512 and $2,305. Only a sustained breakout above $2,919 would confirm an upward trend.
In summary, Ethereum currently faces significant downward pressure, and market sentiment is turning cautious. The liquidation of leverage positions and the aftermath of the Bybit incident have intensified price volatility. The potential decline in ETH prices could have a ripple effect on the altcoin market, and investors need to closely monitor key support levels and changes in market sentiment.
