What to Know:
- Bitcoin is battling to hold the $100,000 level as key support.
- Altcoins are showing varied reactions to the overall market correction, with some finding support while others face further declines.
- Analysts are divided on the depth of the correction, with some predicting new all-time highs by year-end.
Bitcoin bulls are currently defending the crucial $100,000 support level, a breach of which could trigger accelerated selling pressure and potentially drive the price down to $87,800. Despite this defense, recovery attempts are expected to encounter resistance around $107,000. The ongoing tug-of-war highlights the uncertainty in the market as long-term and short-term holders alike have been observed selling off their holdings.
According to data from CryptoQuant, long-term Bitcoin holders have reduced their supply by 405,000 BTC in the last month. Short-term holders have also contributed to selling pressure, sending 28,600 BTC to exchanges in just three days. This selling behavior underscores the current market sentiment, reflecting concerns about the sustainability of Bitcoin’s price at these levels.
Bitcoin bulls are aggressively defending the critical $100,000 support level, as a break below it may accelerate selling, potentially pulling BTC price below $87,800.
While some analysts anticipate a deeper correction, Bitwise CIO Matt Hougan suggests that the recent downturn indicates peak retail capitulation rather than the beginning of a prolonged collapse. Hougan remains optimistic, projecting that Bitcoin will reach new all-time highs by the end of the year. This divergence in opinion underscores the volatility and unpredictability inherent in the cryptocurrency market.
XRP has slipped below the $2.19 support, signaling increased bearish control. Recovery attempts are expected to face resistance at the 20-day EMA ($2.46), with a potential drop to $1.61 if the price fails to sustain upward momentum. Conversely, Solana (SOL) is attempting to reclaim the $155 level, but faces strong downward pressure, with potential support at $126.
As the cryptocurrency market navigates this period of uncertainty, investors and traders should remain vigilant and informed. Monitoring key support and resistance levels, as well as analyzing market sentiment, will be crucial for making informed decisions. While the path forward remains unclear, the underlying fundamentals of Bitcoin and other cryptocurrencies continue to evolve, driven by innovation and increasing adoption.
Source: Original article
