Crypto Market Crash: BTC, ETH, DOGE Lose Crucial Support, What’s Next?

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As a seasoned analyst with over two decades of experience in traditional finance and cryptocurrency markets, I have seen my fair share of market corrections, and the current crypto market crash is reminiscent of the dot-com bubble burst in 1999. However, unlike that era, the blockchain technology behind Bitcoin and other altcoins has proven its resilience and potential for growth over time.

In the midst of a significant downturn in the cryptocurrency market, liquidation amounts surged past $1 billion as the price of Bitcoin plummeted to around $95,000. Cryptocurrencies such as ETH, SOL, and DOGE are experiencing increased selling pressure, causing them to decline by 8-13%. Even though declines in Bitcoin are typical during market cycles, investors are questioning how far the drop in BTC will extend from this point onward.

Can Crypto Market Crash Push BTC Price Even Lower?

BTC Preparing for 25% Drop to $80,000

Amid increasing panic selling, the cryptocurrency market plunge persists, with Bitcoin’s price diving lower beyond its significant support level of $100,000. Crypto experts foresee a potential 25% drop from Bitcoin’s record high of $108,000 in the near future. Notably, well-known crypto analyst Rekt Capital has remarked:

If you believe that significant pullbacks, such as a decrease of -25% or -30%, are unlikely to happen during this market cycle, it would be beneficial for you to thoroughly examine this year’s overall correction from March to August, which amounted to a 34% decrease. Alternatively, you might want to take a closer look at the multiple instances of approximately -25% pullbacks that occurred between March and August.

If historical patterns recur, there’s a possibility that the price of Bitcoin (BTC) could correct downwards all the way to around $80,000 once more. This prediction comes from crypto analyst Rekt Capital, who has expressed concern over a potential correction in BTC due to the ongoing presence of a Bearish Engulfing Candle on its weekly chart. In a recent update, this analyst pointed out that the significant weekly support level at approximately $101,200 is currently being challenged and may not be able to withstand the pressure.

The analyst pointed out that, should the crucial blue area of support not hold its ground, and together with Bitcoin’s recent five-week upward trend (indicated by the orange line), there is a strong possibility that Bitcoin might enter a more extensive period of downtrend or correction.

Key Support Levels to Watch for Bitcoin in Crypto Market Crash

At the moment of publication, the Bitcoin cost is currently dropping by 4.2%, or $96,828 per coin, with a total market capitalization of $1.92 trillion. Analyst Ali Martinez highlights that the crucial support area for Bitcoin lies between $98,830 and $95,830. This range is significant because roughly 1.09 million wallets have combined to buy over 1.16 million Bitcoins within it, making it a key price level.

According to Coinglass data analysis, Bitcoin’s open interest has decreased by 5%, but there’s been a significant spike in 24-hour liquidations amounting to $217 million. Out of this total, approximately $166 million were long liquidations being closed. However, despite the recent downward trend, the Bitcoin Fear and Greed Index continues to indicate “Greed,” with a score of 74.

Financial experts predict that the downturn in the cryptocurrency market may extend even more due to a rise in the U.S. Dollar Index (DXY). Crypto analyst Justin Bennett underscores the significance of monitoring international liquidity movements, indicating that his prediction for the US dollar has been 110.00 since it surpassed 102.60, and he anticipates this level could mark the bottom for cryptocurrencies around early 2025.

Altcoins ETH, SOL, and DOGE Face Stronger Corrections

ETH Loses the Crucial Support of $3,500

In simpler terms, popular digital currencies besides Bitcoin have experienced a downturn in value along with the overall market decline. Specifically, the price of Ether has dropped by approximately 9% over the past day, falling below its significant support level at $3,550 to now trade at around $3,346. There’s a chance Ethereum may dip back down to $3,000 before recovering.

Moreover, there’s been an increase in Ethereum whales offloading their assets lately. According to blockchain analysis provider LookonChain, this downward trend in Ethereum’s value has led to increased selling by major investors who are using the proceeds to clear outstanding debts.

  • In the last five hours, one whale transferred 22,746 ETH, worth $77.7 million, to Binance and subsequently withdrew stablecoins to repay obligations on Spark and Aave.
  • Another whale deposited 49,910 ETH, valued at $170 million, into Binance, withdrawing $137.8 million in stablecoins within the past eight hours.

However, market analysts continue to be hopeful moving ahead. Popular analyst Ted Pillows wrote:

It appears that $4,000 might be the new equivalent of $1,400 for Ethereum. In the 2020-21 cycle, ETH repeatedly failed to surpass $1,400. At the moment, we’re seeing a similar pattern with the $4,000 level, but it won’t be long before there’s a successful breakthrough.

Solana Price Cracks Under $200

After reaching a peak of $263 in November, Solana’s price has since been relatively stable, lagging behind other coins in its category. In today’s cryptocurrency market downturn, the Solana price has fallen below its significant support level of $200 and is currently trading at approximately $193 as we speak.

Cryptocurrency expert Lieutenant Ponzi has highlighted Solana’s (SOL) weekly chart, identifying a substantial order block (OB) and a bullish bat pattern. As per the analyst, the $165-$170 region could become a significant point of focus, potentially serving as a potential barrier or reversal point for the digital currency.

 

DOGE Price Tanks 13.5% Amid Crypto Market Crash

Today’s Dogecoin price experienced a significant decrease of approximately 13.5%, dropping to around $0.31 at the time of reporting. This downward trend has caused the popular meme coin to accumulate weekly losses exceeding 22%. Analysis from Coinglass over the past 24 hours indicates a 20% drop in open interest and nearly $55 million worth of Dogecoin liquidations, with around $44 million being long liquidation.

Despite this, market analysts continue to be optimistic about DOGE. Market analyst BALO has highlighted crucial price levels for Dogecoin’s (DOGE) weekly performance.

As per the analysis, it’s crucial for Dogecoin (DOGE) to close weekly above $0.26 in order to sustain its bullish trend. If DOGE manages to regain the $0.42 price point, Balance of Wealth (BALO) anticipates a potential jump towards $4, indicating a substantial increase for the well-known meme coin.

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2024-12-20 10:53