By
Bhushan Akolkar
April 30th, 2024
This sudden bearish momentum has prompted analysts to reassess their predictions and shed light on what might be next for these digital assets.
The cryptocurrency market has been gripped by a bearish frenzy, with major coins experiencing price drops. Bitcoin (BTC) has seen its price plummet from around $70,000 in the last 24 hours to $66,000, marking a decline of approximately $5.71%. Similarly, Ethereum (ETH), the second-largest cryptocurrency, has not been spared, dropping from $3,649 to around $3,300, a 9.51% decrease.
This sudden bearish momentum has prompted analysts to reassess their predictions and shed light on what might be next for these digital assets. Last week, analysts anticipated that Bitcoin would break above overhead resistance and reach new all-time highs. However, the recent turn of events has forced a reevaluation of these forecasts.
Santiment, an on-chain analytics platform, also commented about BTC’s drop to $66k, adding that many other altcoins followed the same price trajectory. Despite this downturn, Santiment remains optimistic about a quick rebound, noting that historically, the best time to buy a coin is when it is experiencing a dip. This aligns with the idea of buying the dip, a popular strategy among cryptocurrency investors, which involves purchasing assets when prices are low with the expectation of potential future gains.
📉 #Bitcoin has seen a drop to $66.4K, and #altcoins have shed much more of their market caps as prices have continued their concerning retracement to kick off April. However, the crowd is staying quite strong and showing confidence toward the prospects of a quick rebound.
The… pic.twitter.com/tbGmtmTNIb
— Santiment (@santimentfeed) April 2, 2024
Ali, another on-chain analyst, shared his perspective on X. He stated that the TD Sequential indicator has flashed a sell signal on Bitcoin’s weekly chart, indicating a potential correction ahead. Ali anticipates a downturn lasting between one and four weekly candlesticks, suggesting that the bearish trend could persist for a few more weeks.
The TD Sequential indicator presents a sell signal on the #Bitcoin weekly chart, anticipating a one to four weekly candlesticks correction! pic.twitter.com/51JY2ADTYb
— Ali (@ali_charts) April 1, 2024
With some analysts seeing more potential downturns, one could argue that it is a good time for bulls to buy the dip again before the price continues to rally.
Ethereum Could Further Plummet to $2,850
Turning to Ethereum’s bearish performance, Ali commented that the ETH price trading below $3,460 is deemed problematic for bulls. He revealed that the coin is lacking support at that zone, which further increases the chances of a correction towards $2,850 or lower. His analysis suggests breaching $3,460 without robust buying could trigger a bearish spiral, with $2,800 as a potential downside target.
Echoing his previous analysis, he further insisted that the most brutal scenario for Ethereum right now is breaching the $3,400 support level. Such a move could confirm a bear pennant formation on the daily chart, potentially triggering a 17% correction for ETH down to $2,800.
In trading, you must always be prepared for the best and the worst!
The most brutal scenario for #Ethereum right now is breaching the $3,400 support level. Such a move could confirm a bear pennant formation on the daily chart, potentially triggering a major correction for $ETH… pic.twitter.com/LIXyuz8NlI
— Ali (@ali_charts) April 1, 2024
Amid this bearish trend in the cryptocurrency market, both analysts and investors are closely observing the situation, striving to understand the potential implications and future paths for Bitcoin, Ethereum, and other altcoins. While optimism persists among some, with Santiment’s claim echoing in the crypto community that there is a growing call for more “buying”, others are preparing themselves for the possibility of prolonged bearish conditions.