Breaking: Bitcoin price plummets below $40,000 while Ethereum price loses $3,000 as support


  • Bitcoin price slips below $40,000 as it dropped roughly 40% from its all-time high at $64,895.
  • This nosedive has pushed BTC below the 200-day SMA at $39,818, which is a bearish sign from a macro perspective.
  • Ethereum price followed the flagship crypto as it slid below $3,000 after a 35% downswing from its record high at $4,380.

Bitcoin price has seen a massive selling pressure today that has caused to slice significant support levels. Ethereum price has also stepped under a crucial psychological level indicating a shift in trend.

Bitcoin price bull run gains in jeopardy

Bitcoin price has crashed roughly 11% on a daily time frame to $38,514. This move has caused the flagship cryptocurrency to tag the demand zone, extending from $37,412 to $39,727. Additionally, the 200-day Simple Moving Average (SMA) at $39,820 has also been breached, a bearish sign as it represents a major shift in trend. Therefore, investors need to keep a close eye on the daily close relative to the 200 SMA.

While the above scenario seems bearish, during its bull run in February, BTC gathered steam around the support area mentioned above and led the run-up from nearly $40,000 to $60,000.

So, a dip into this barrier will allow more buyers to scoop the pioneer cryptocurrency at a discount. Investors can expect a quick bullish reaction that pushes Bitcoin price 15% to tag the swing low created on May 13 at $45,700.

If the buyers overwhelm the bearish pressure, BTC could climb another 12% to tag $51,572.

BTC/USD 1-day chart

BTC/USD 1-day chart

On the flip side, if the sellers run wild and bulls fail to tame them, Bitcoin price crash will continue. A convincing daily close below $37,412 will invalidate the bullish outlook and trigger an 8%  sell-off to $34,245.

Etheruem price shatters $3,000

Ethereum price has been a stellar performer this bull run. However, the recent market sell-off has pushed ETH below $3,000, a significant psychological level. Although this move seems bearish in the short-term, the altcoin pioneer could see a slow down around the 50-day SMA at $2,766.

If the buyers come to the rescue, Ethereum price could find itself bouncing from the level mentioned above. An increase in bullish momentum here could push the smart contract token price by 23% to $3,430, a demand level that helped ETH kick-start its bull rally in early May.

ETH/USD 1-day chart

ETH/USD 1-day chart

A breakdown of the 50-day SMA is bearish without a doubt and would lead to a 13% downswing to the daily demand zone, stretching from $2,106 to $2,397. This zone harbors the 100-day SMA at $2,248. Therefore, it is highly likely that the selling pressure will face exhaustion here, leading to a quick 50% upswing to $3.430.

The off chance that ETH price produces a successful daily candlestick close below $2,106 would invalidate the bullish outlook and trigger a 27% crash to the 200-day SMA at $1,544.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP