Bitcoin, Ethereum Price Prediction- Here’s Why Market Leaders May Witness Deeper Correction
Bitcoin, Ethereum price prediction: the crypto market experiencing a sudden sell-off threatens to offset the last recovery cycle in Bitcoin and Ethereum. Along with market leaders, the majority of altcoins tumbled lower and neared the November bottom. Thus, if the selling pressure, the downward spiral may continue and plunge the coin price below the last swing low support.
Top Gainers and Losers
Source- Coin360
While the bearish cloud is lurking on the crypto market, the UNUS SED LEO and Toncoin are the only coins in green among the top 100 list. LEO price currently trades at $3.91 with intraday gains of 5.34%, while the TON price trades at $2.46, registering a 0.4% gain. On the other hand, Filecoin and Chainv tokens are top losers, with FIL price at $3.03, down 21.86%, while XCN price at $0.02483 is down 18.67.
Why has the crypto market crashed recently?
The sudden selling pressure in the crypto space must have been raised when market participants got concerned regarding the financial health of the world’s largest crypto exchange by volume, Binance. The concern arose when Binance presented its Proof-of-Reserves report in partnership with Mazars Group, which many deemed opaque. Furthermore, the news for Mazars Groups has suspended ties with Binance and several other crypto exchanged cause more panic in the market
While the crypto space has recently gone through the FTX crypto exchange crash, investors are quite cautious about such events.
Moreover, the hearsay that US Fed will get aggressive regarding interest hikes has flued more negativity in the market.
Bitcoin Price
Source- Coinmarketcap
The Bitcoin price witnessed a recovery rally from late November to mid-December. However, it seems this price bull run was a part of a bearish continuation pattern called an inverted flag.
Thus, with the recent price drop, the coin price gave a massive breakdown from the pattern’s support trendline. On December 16th, the long breakdown candle backed by an increasing volume indicated the seller’s confidence for further correction.
Source- Tradingview
Today, the BTC price trades at the $16709 mark and shows power struggles to surpass the horizontal level of $16825. Thus, if the price shows sustainability below the mentioned $16825 or breaches the trendline, the Bitcoin price may drop 6.7% to revisit $15600.
Ethereum price
Source- Coinmarketcap
Similar to Bitcoin, the Ethereum price rose in response to a support trendline. However, on December 15th, this altcoin breached the ascending trendline, indicating market sentiment has shifted from buying on dips to selling in rallies.
With sustained selling, the ETH price plunged lower and pierced local support of $1240 to $1222. This breached horizontal level offers additional resistance in favor of sellers to maintain the ongoing downfall.
Source-Tradingview
By the press time, the Ethereum price trades at $1180 with an intraday gain of 1.15%. The bullish candle backed by lesser volume indicates market participant is more interested in selling activity.
Thus, a possible retest phase may revisit the $1180 mark to replenish the bearish momentum. Furthermore, a post-retest downfall may plunge the ETH price back to $1100-$1080.
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