Crypto market collapses, Bitcoin drops to $ 42,800

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A crash in the cryptocurrency market! Just yesterday, we analyzed Bitcoin’s bullish breakout above the long-term zone of $ 51,200, and today the largest cryptocurrency fell to a low of $ 42,800.

Other cryptocurrencies lose even more. Most of them have lost around 30% of their value today. The only TOP 10 altcoin that doesn’t worry about dips and continues to soar is Solana.

Bitcoin loses 19%

Bitcoin (BTC) fell 19% today, from a high at $ 53,000 to a low at $ 42,800. The price fell sharply between 3:00 p.m. and 5:00 p.m. CET, after BTC began closing consecutive hourly candles below the long-term zone of $ 51,200. Additionally, this level coincides with the 0.618 Fib retracement of the entire downward movement in May.

The cascading declines ended in the long term support area of ​​$ 42,800, which is the horizontal support level at the 0.382 Fib retracement (green rectangle). So, if this level is lost in the following days, the next support is around $ 37,500, at the retracement level of 0.236 Fib.

BTC chart by Tradingview

The strong capitulation was followed by a significant upward rebound of 10%. Bitcoin quickly returned to the 0.5 Fib retracement zone and is trading at $ 46,800 at press time.

The decline took place on a relatively high volume, which could signal the start of a bearish momentum. If this happens, the declines could continue until the price re-validates the $ 42,800 area as support.

The likelihood of this scenario is enhanced by losing significant support at the 0.618 Fib retracement. Two days ago there was a fake as it turned out that today BTC has clearly breached the $ 51,200 level. Typically, this is a very bearish signal that reinforces the intensity of a downward movement.

Altcoins bleed harder

Almost all of the major altcoins have seen drastic declines today, typically larger than Bitcoin. For example, counting down the length of the candle including wicks, Ethereum (ETH) lost 24% today and recorded a bottom at $ 3,009, Cardano (ADA) 30% with a bottom at $ 2, Chainlink (LINK) 33% and $ 23.79, and Dogecoin (DOGE) 31% and $ 0.21.

Data from CoinGecko shows that the total cryptocurrency market cap fell more than 14% today. In the morning, the market value hovered around $ 2.48 trillion, dropping to around $ 2.14 trillion at the moment.

TOP 12 cryptocurrencies by CoinGecko

The only prominent altcoin that seems indifferent to the market crash is Solana (SOL). Solana opened the day at $ 164, recorded a brief low to $ 128 to trade at $ 173 at press time.

The hours and days to come will show the significance and consequences of today’s crash. Whether this is just a temporary correction and a bearish trap for too many leveraged long positions remains to be seen, or the start of a larger trend change.

Disclaimer All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes on the information found on our website is strictly at his own risk.

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