Daily Crypto Signals: Bitcoin and Ethereum Tumble as Market Faces Fourth Week of Outflows
The cryptocurrency market is experiencing significant downward pressure with Bitcoin falling below $80,000 and Ethereum plunging under $1,900, as investor sentiment remains bearish amid continued outflows from crypto ETPs totaling $876 million last week.
The cryptocurrency market has entered a period of intense selling pressure, with nearly $1 trillion in market capitalization erased within two months. Crypto exchange-traded products (ETPs) have recorded their fourth consecutive week of outflows, totaling $4.75 billion over this period and pushing year-to-date inflows down to $2.6 billion. This sustained negative trend has coincided with risk-off sentiment spreading across traditional markets, with the S&P 500 and Nasdaq experiencing significant drops of 2% and 3.5% respectively.
Bitcoin’s Support at $80,000 Fails
Bitcoin BTC/USD has dropped dramatically from recent highs around $85,000 to below important support levels, touching multi-month lows around $77,000. Closely observing the $78,258 support level, technical analysts see a break below perhaps opening the path for another downturn to $73,777.
Though the market action is bearish, on-chain data indicates that larger investors could be accumulating wallets containing 10 BTC or more buying over 5,000 Bitcoin since March 3. BitMEX co-founder Arthur Hayes has cautioned, nevertheless, that if Bitcoin falls into the $70,000-$75,000 range—where notable open interest is concentrated—its price movement may become highly erratic.
Ethereum Slides Under $2,000
After shattering important support at $2,111, Ethereum ETH/USD has seen an even more extreme decline falling below $1,900. This marks a 10% daily decline that has rocked the DeFi ecosystem where ETH is vital collateral. As the borrower provided more collateral, a large loan of $74 million supported by around $130 million worth of ETH narrowly avoided liquidation.
DeFiLlama data indicates that should ETH drop another 20%, around $366 million in debt risks possible liquidation. Reduced network traffic leading in lower fee burning and hence ETH inflationary at 0.7% annually have been blamed for ETH’s underperformance relative to the wider altcoin market.
Top Altcoins to Watch Today
- XRP XRP/USD: XRP is approaching a critical support level at $2.00, with a break below potentially completing a bearish head-and-shoulders pattern that could see prices fall toward $1.28.
- Solana SOL/USD: SOL has broken below its uptrend line and entered a strong support zone between $120 and $110. Bulls are expected to defend this range vigorously, though a failure could lead to further drops toward $100 and possibly $80.
- BNB BNB/USD: Binance Coin has fallen below the important $546 support level and could target $500 next. The $500-$460 zone represents a critical area where buyers are expected to step in aggressively.
- Cardano ADA/USD: ADA has dropped below key moving averages with increasing bearish pressure. The next support levels to watch are $0.58 and then $0.50 if selling continues.
- Dogecoin DOGE/USD: DOGE has resumed its downtrend after falling below $0.18 support, with technical indicators suggesting bearish dominance. The next support level sits at $0.14.
The crypto market faces significant headwinds in the near term, with both institutional and retail sentiment remaining cautious. As liquidation risks loom and traditional markets show weakness, investors will be closely watching key support levels while awaiting catalysts that could potentially reverse the current downtrend.
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