Key Points
- The crypto market cap has seen a drop of over 4% in the past two days.
- Bitcoin and Ethereum could potentially fall below key support levels.
The cryptocurrency market is going through a tough phase, marked by significant drops in major assets like Bitcoin [BTC] and Ethereum [ETH].
This recent trend creates a cloud of uncertainty over the upcoming crypto week.
Market Trends
Currently, the cryptocurrency market is witnessing significant turbulence, marked by a notable decrease in total market capitalization.
Data from CoinMarketCap shows a decline of over 4% in the market cap, largely due to drops in Bitcoin and Ethereum.
BTC has seen a sharp decrease of over 26%, while Ethereum’s decline is steeper at over 30%.
These significant drops contribute majorly to the overall market downturn.
BTC maintains a dominance of over 55% in the market, while Ethereum’s dominance stands at over 16%.
The crypto week ahead is filled with uncertainties due to these declines and ongoing high volatility.
Bitcoin and Ethereum’s Performance
At the time of writing, Bitcoin was trading at around $50,800, marking a decline of over 12%.
Ethereum was trading at approximately $2,260, experiencing a decline of over 15%.
The Fibonacci retracement tool can be used to analyze potential price movements for the upcoming week.
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.
If the price stays above the 23.6% level, it could test higher levels, such as the 38.2% level at $56,847.56 or the 50% level at $59,127.13.
On the other hand, Ethereum’s price is just above the 0% Fibonacci retracement level.
If the price breaks below this level, it could signal further downside potential.
If the price holds above the 0% level, 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.
