- Bitcoin rejection at $60,000 opens Pandora’s box as declines to $50,000 beckon.
- Ethereum loses ground above $2,000 amid a potential drop to 100 SMA on the four-hour chart.
- Ripple purged from highs above $1, scattering bulls for losses targeting $0.68.
The cryptocurrency market is back into the red zone after a brief rally that mainly benefited selected altcoins. Bitcoin has plunged from $60,000 and barely holds immediate support at $56,000. If the flagship cryptocurrency cracks this support, investors are bound to start panicking, adding credence to the bearish outlook.
Similarly, Ethereum is down 7.4% in the last 24 hours, after losing support at $2,000. After leading the rally over the weekend and hit highs beyond $1, Ripple has lost nearly 10% of its value. Polkadot and Stellar have also seen the accrued gains erased in double-digits of more than 10% each. As crypto assets hunt for support, it is essential to realize that bull cycles tend to correct before hitting higher highs.
Bitcoin Breakdown Lingers Toward $50,000
Bitcoin failed to break above $60,000 following recovery from March 25 dip to levels close to $50,000. The four-hour chart highlights the formation of a technical rectangle pattern. While this pattern results in bullish breakouts, there are instances when breakdowns occur, such as the one Bitcoin is witnessing.
Cracking the rectangle’s support leads to increased volume as selling activity soars. The 100 Simple Moving Average (SMA) on the four-hour chart did little to stop the losses. Meanwhile, the flagship cryptocurrency battles to secure support at the 50 SMA.
A comprehensive look at the chart, short-term analysis confirms the bearish picture lasting longer based on the Moving Average Convergence Divergence (MACD) indicator. The trend direction and momentum indicator has slipped into the negative region. The bearish narrative is bound to worsen if the MACD line stays under the signal line.
BTC/USD four-hour chart
Ethereum Explores Downstream Levels under $2,000
The giant smart contract token has spiraled from the recently traded all-time high of $2,145. Initially, support seems to have been established above $2,000, but sellers have overpowered the bulls.
Meanwhile, Ethereum is trading at $1,955 after losing another critical support at the 50 SMA on the four-hour chart. If the next tentative support at $1,900 fails to hold, Ether will likely extend the bearish leg to the 100 SMA support, as highlighted at $1,850.
The least resistance path is downward, as emphasized by the MACD. Massive losses will come into the picture if this indicator slides into the negative territory.
ETH/USD four-hour chart
Check Out: Will Ethereum Reach $3000?
Ripple Brief Spike above $1 Culminates in Massive Losses
The cross-border token is bleeding profusely after dropping from the multi-year high of around $1.1. Short-term support at $1 did little to stop the overhead pressure. XRP is trading at $0.88 while seeking support toward $0.8.
If this support gives in, we can expect Ripple to dive toward the 50 SMA support, highlighted at $0.68. The Relative Strength Index (RSI) on the four-hour chart has a negative slope after rejection from the overbought region. Closing the gap toward the oversold territory would trigger massive sell orders as XRP extends the correction to $0.68.
XRP/USD four-hour chart
It is worth keeping in mind that that support at $0.8 would ensure market stability returns. Here, buyers will increase their positions, anticipating an upswing past $1 and the recent high of $1.1. An earlier discussion revealed that Ripple was nurturing a breakout to $1.7 following a symmetrical triangle pattern.
Read More: Is Ripple a Good Investment?