While this is just another week for the financial market, a sudden rally lower has raised eyebrows at what could become of it soon. Most leading assets fell by 8% without knowing the reason behind it. Analysts have started making predictions about what might be the next course of action.
Bitcoin Metrics Evaluation
Bitcoin could not cross the $20.5k support border, which led to a pullback to $19.5k. Now it has gone even lower to trade slightly above $18k and still shows possibilities of a further dump. Percentage metrics put the recent dip at -5%.
Analysts see a support zone at $18.5k. If broken, there is a major one at $18k that provides price a solid ground. If the one at $18k also gets trampled, it will plummet the price to $17.6k or lower.
But supposing the price retracts upward instead, it would collide with bears first at $19.2k. In the event of a breakthrough, the next resistance awaits at $19.5k. A break above that level will send the price on a further upward trajectory towards $20.5k.
Price would confront another resistance at $20.5k that, if flipped, would hold very strong.
As usual, altcoins found themselves in the same boat as Bitcoin since they often react accordingly. Most alts tripped and fell by over 5%. Ethereum returned to trade under $1.6k, while XRP hit the $0.320-floor created by price.
Ethereum Metrics Evaluation
Ethereum had ignited optimistic sentiments among investors after crawling its way up to $1.7k a few days back. But unfortunately, the coin took a plunge like the others after Jerome Powell’s speech in Wyoming. Nothing has been the same for Ethereum since the FED chairman affirmed combating inflation hawkishly.
Slowly, Ethereum went from topping the charts at $1.7k to trading below $1.65k. The recent dip in the entire market also contributed to another rally downwards. ETH wound up beneath the $1.6k support level.
Percentage metrics estimate its latest dip around 8%. The move attracted the price to the $1.5k support zone.
Analysts concluded that a break lower would transit the price to the next support at $1.450k. If this zone refuses to hold the price higher, Ethereum will revisit $1.420k, or worse, $1.3k.
However, if the price skyrockets, sellers are likely to resist at $1,550k. If they fail there, they could hold the line at $1.6k. Otherwise, bulls will actively take charge of the market.
Skepticism continues to inflate with the Ethereum merge coming in hot. Investors are oblivious of what could follow the upgrade, especially concerning price. Some infer a potential decline in the price of digital assets, while others see otherwise.
The rising level of FUD could ignite a selling motive among bears who cannot afford to lose more value on their coins. While Bitcoin shows no sign of resilience in these trying times, investors continue hoping for a turnaround to the bright side in the coming days.
At press time, Bitcoin was trading at $18,748. Ethereum, on the other hand, was at $1,514.