The price of BTC has fallen by more than $ 6,750 in recent days, from $ 44,750 to $ 38,000. It means that Bitcoin became cheaper by more than 15% in just five days. This massive sell-off led to two technical support levels: local at $ 42,000 and more critical at $ 40,700.
Looking at the BTC quotations, it is worth noting that there has also been a pro-decline Double Top formation due to the recent declines, which may naturally determine further declines towards the January lows, i.e. $ 35,000, or even below $ 30,000.
However, it is possible that before a further sell-off, the market will first perform an uplift, which could lead to a re-test of recently breached support levels (now resistance).
However, considering that the first of them, amounting to $ 40,700, coincides with the measurement of 38.2 %. Fibonacci retracement, and the other in the region of $ 42,000 with the golden ratio, i.e. measuring 61.8 %. Fibonacci retracement from an earlier downward move seems highly probable that even if such a rebound occurs, the increases will not exceed $ 42,000.
We could also expect potential declines in the near future on the Ethereum quotations, the price of which has slipped by over 19 % in recent days. This sell-off led to the defeat of technical support around $ 2,800, which may naturally determine a further depreciation of the ETH exchange rate towards the January lows, i.e. $ 2,350, or even further to the next support area of $ 1,750.
However, it is possible that before a further sell-off, the market will first perform an uplift, which could re-test the recently breached support (now resistance) level of $ 2,800.
The current situation on the BNB quotes is also very similar. The price of this cryptocurrency has recently dropped by over 15%, resulting in technical support for $ 395 being defeated. It also meant that similarly to BTC, there was a pro-declining Double Top formation here, which indicates the potential for further depreciation towards $ 335, or even further to $ 255.
The current situation on the Cardano quotes is also pro-declining. The exchange rate of this cryptocurrency has recently dropped below the fundamental support level of $ 1, thus increasing the range of the ongoing from September last year. Depreciation to over 70 %. It also brought the ADA rate to its lowest level since February 2021.
Given that — at least from a purely technical point of view — overcoming one technical support level opens the door to further sell-off towards another support. In this case, we could expect further depreciation towards 80 cents or even further to 40 cents.
The current situation on the Uniswap quotation is also very similar. The price of this cryptocurrency fell below the technical support of $ 10, resulting in its lowest level since January 2021.
As long as this sell-off continues, the UNI rate could slide towards $ 7 in the near term or even further to $ 4.50.
More comments on the cryptocurrencies described above and an analysis of the next few can be found in the market review from Geco One on Comparic Markets TV.
