The cryptocurrency market is experiencing a significant downturn, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) witnessing substantial losses. As Bitcoin hovers around $82,000 after falling nearly 15% last week, Ethereum and Ripple have followed suit, plunging approximately 20% and 28%, respectively. With momentum indicators displaying further weakness, traders and investors are bracing for a potential extended correction.
Bitcoin Price Faces Crucial Test Below $85,000
Bitcoin price recently closed below its crucial 200-day Exponential Moving Average (EMA) level at $85,754, marking a 6.37% decline on Sunday. As of Monday, BTC remains at approximately $81,800, showing no immediate signs of recovery.
If the downward trend persists, BTC could test its February 28 low of $78,258. A decisive close below this support level may trigger additional declines, pushing the price towards the next major support at $73,072. The technical indicators reinforce this bearish outlook:
- Relative Strength Index (RSI): The daily RSI is currently at 36, having rejected its neutral level of 50 last week. This signifies a growing bearish momentum.
- Moving Average Convergence Divergence (MACD): A bearish crossover on Sunday has further validated the ongoing selling pressure, increasing the likelihood of continued downward movement.
If Bitcoin manages to stage a recovery, it could see an upward move toward $85,000. However, the overall market sentiment remains bearish, and buyers may struggle to regain control.
Ethereum Price Displays Weak Momentum
Ethereum has also succumbed to the market downturn, closing below the critical $2,125 support level on Sunday following a 20% weekly drop. Currently trading at around $2,051 on Monday, ETH faces increasing pressure from sellers.
Should Ethereum maintain its downward trajectory, the next key support to watch is $1,905. A sustained decline below this level could open the door for further losses, putting $1,800 within reach. The momentum indicators are painting a concerning picture:
- RSI: The RSI has dropped to 35 after rejecting the neutral 50 level, reinforcing bearish sentiment.
- MACD: A bearish crossover last week signaled continued selling pressure, indicating that ETH could experience further declines.
On the flip side, if Ethereum manages to close above $2,125, it may spark a recovery rally toward its next major resistance level at $2,359. However, the prevailing market conditions suggest that a strong rebound may be difficult in the near term.
Ripple (XRP) Bears Strengthen as Price Rejection Continues
Ripple (XRP) faced a sharp rejection at the key psychological resistance level of $3 on March 3, leading to a 27% drop by Sunday. As of Monday, XRP is trading at around $2.17, with bearish sentiment intensifying.
If XRP continues its downward correction, it may soon retest the daily support level at $1.96. A successful close below this level could trigger another leg down, pushing the price towards its February 3 low of $1.77. The technical indicators confirm that sellers are in control:
- RSI: XRP’s RSI currently stands at 42, below the neutral level of 50, indicating weak buying momentum.
- MACD: A bearish crossover on Sunday suggests a continuation of the downward trend, signaling that sellers are still in the driver’s seat.
Despite these losses, if Ripple regains strength and reclaims $2.50, it could target a potential recovery towards $3. However, given the bearish structure, further declines appear more likely.
Market Outlook and Investor Sentiment
The broader cryptocurrency market remains under pressure as Bitcoin, Ethereum, and Ripple struggle to hold key support levels. A combination of technical weaknesses and macroeconomic factors, including potential regulatory developments and market-wide sentiment shifts, are contributing to the ongoing volatility.
While a potential bounce-back remains a possibility, the technical indicators suggest that further losses could be ahead unless buying momentum significantly improves. Investors and traders should closely monitor support and resistance levels for potential opportunities in this uncertain market environment.
