Bitcoin’s Critical Support Levels
Bitcoin has lost its footing at around $55,000, triggering one of the biggest liquidations in the history of the cryptocurrency market. Considering the dire state, it is crucial to identify and highlight the thresholds that might act as grounds for a reversal in the foreseeable future.
Bitcoin’s first significant support level is likely to be between $52,000 and $50,000. The psychological effect of the round number makes this range important. Furthermore, historical evidence indicates that this range has previously functioned as both resistance and support, making it crucial for a possible reversal.
Examining the weekly chart, the $47,000 level is critical. This level aligns with the weekly 200 EMA and relates to a prior consolidation phase. The 200 EMA is considered a long-term support level, and a bounce from this mark might give Bitcoin the momentum it needs to start rising again.
If Bitcoin falls from this level, it may signal a more significant correction. The next noteworthy support zone is in the $42,000–$40,000 range. Historically, this region has served as a solid support level and the base of significant corrections. Its significance is increased by the fact that the 200 EMA on the daily chart also resides in this range. Maintaining this level might stop more sizable drops and even pave the way for a rebound.
Toncoin’s Biggest Drop
Toncoin (TON) experienced one of the largest percentage drops in 48 hours. The Telegram-backed asset lost around 20% of its value, tumbling from around $8 to $6.6, practically losing all the gains it had since the beginning of the month.
Several reasons contributed to the sudden drop in Toncoin’s value:
- General bearish sentiment in the market.
- Large sell-offs in several cryptocurrencies due to Bitcoin’s decline below crucial support levels.
Technical analysis shows that TON has crossed above the 50 EMA and is presently circling around the 100 EMA. Although there have been strong support levels at this point in the past, concerns exist that they may not hold this time due to the severity of the recent sell-off.
Additionally, the noticeable decline in the Relative Strength Index (RSI) suggests that Toncoin is approaching the oversold region. Despite the possibility of a brief uptick, prices may continue to decline due to the overall bearish momentum.
Solana’s Unexpected Source of Strength
Amid the catastrophic market drop, Solana has shown a strong upward movement, contrasting with the market’s general trend. Solana’s performance is particularly impressive given the general pessimism in the market.
Solana has managed to gain 8% during the substantial declines of major assets such as Ethereum and Bitcoin. This suggests underlying bullish factors and strong investor confidence. Observing the daily chart, Solana is now targeting the 100 EMA after breaking above its 50 EMA, a crucial resistance level. This upward trend is especially noteworthy as it stands in stark contrast to Ethereum’s downward trajectory.
Additionally, the rising Relative Strength Index (RSI) indicates more buying pressure and momentum supporting Solana’s price action. However, it is important to note that Solana is still losing value against the U.S. dollar.
