Bitcoin (BTC) and Ethereum (ETH) have both fallen below critical support levels at $55,000 for the former and $1,700 for the latter. There is obviously an ongoing market sell-offs as the Bitcoin and Ethereum bears re-establishes their reign in suppressing the growth of both digital currencies to soar to new heights.

The bearish trend in the market today, though impacting heavily on the global cryptocurrency market whose capitalization has slipped by 5.08% to $1.71 trillion at the time of writing (11:13 AM UTC), some top altcoins have shown remarkable resilience to the market pull into the abyss. Per CEX.IO cryptocurrency price feed, XRP (XRP), and Uniswap (UNI) are trading in the green after maintaining a 24-hour growth rate of 4.9% and 0.55% respectively.

As is common in the market, the pull-down of both Bitcoin and Ethereum is being met with resistance from the bulls, but the general sentiment in the market per some fundamental realities is causing the weakening of the short-term positions of the buyers. Today’s analysis highlights the underlying factors stirring the obvious moves in the market and the twists, if any, being depicted by the technicals.

Bitcoin forms a new resistance at $55,000

Bitcoin has formed a new resistance at the $55,000 price mark as the aggressive selling in the market pushed the price to a daily low of $53,470.69. Though some of the losses are currently being parred, BTC is still trading in the red at $54,106.5, down 6.63% in the past 24 hours.

Amongst the worries in the market is the perceived slowing down of institutional investors’ debut into the Bitcoin market. Analysts on Wall Street are positing that the unsustained growth in the price of Bitcoin in the past days can be attributed to the lack of new funds, a trend that has accounted for the majority of the price pumps of Bitcoin in the past month. Uncertainties abound where there is no idea when new money will flow in.

Additionally, the anticipation of a $6 billion Options contract expiry this Friday, March 26th leaves investors in a neutral state. With recommitment not mandatory, the liquidated funds may not flow back into the asset, a situation that may drag BTC price down.

Bitcoin

A look at the 4-hour BTC-USD chart on TradingView shows a declining trend, fueled by the bearish actions recorded since March 22nd. In a swift pull-down, BTC has dropped from the $58,000 mark, dumping through the $56,000 resistance level, and is struggling to break free from the $55,000 level.

While the Connors RSI is in a neutral position, not indicating a bull market, the Donchian Channels are repressive, with the price around the lower bands spelling the current bearish trend. A momentum change at this time is dependent on the potential of the bulls to buy more, even though no booster news from institutional investors permeates the space in the coming days. If this happens, Bitcoin may resurge back to $58,000, else, new support at $52,000 may be formed in the short-term.

Ethereum’s bulls depends on bitcoin’s resurgence

In the past week, Ethereum charted its own course, maintaining its personalized market run irrespective of BTC’s nudge. However, the second-largest cryptocurrency is showing an increasing correlation with Bitcoin today, trading at $1689.08 and a 6.51% loss in the past 24 hours.

The ETH-USD chart on TradingView shows Ethereum is trading below the 50, 100, and 200 Simple Moving Averages implying a repressive price position that dampens hopes for a long-term price forecast

Ethereum

The Relative Strength Index is also trending toward the overbought region, and if the bears succeed in pushing the price below the $1,600 price mark, a free fall may be experienced, sending the coin back to its 2-month low of $1,200.

However, the resilience of the Bitcoin bulls may have a ripple effect on those of Ethereum seeing their current perceived correlation. If the fallback to $1,200 is prevented, ETH may form a short-term price that will be pegged back to $1,750.


The above content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. The trading of commodities, cryptocurrencies and currencies involves significant risk. Prices can fluctuate on any given day. Because of such price fluctuations, you may gain or lose the value of your assets at any given moment. A cryptocurrency/currency may be subject to large swings in value and may even become absolutely worthless. There is always an inherent risk that losses will occur as a result of buying, selling or trading anything on the market. Cryptocurrency trading has specific risks, which are not shared with other official currencies, goods or commodities in a market. Every user has to carefully assess whether his/her financial situation and tolerance for risk is suitable for buying/selling/trading cryptocurrency.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP