Bitcoin Drops from $70K Amid Profit-Taking: Crypto Volatility

Bitcoin struggled to maintain the $70,000 level amid profit-taking, while Ethereum's upward momentum paused. BTC dominance declined, impacting altcoin performance. Support levels are crucial amid potential bearish trends.

Bitcoin Struggles to Maintain $70,000 Level

Bitcoin faced significant profit-taking pressure, leading to its inability to sustain the crucial $70,000 resistance level. According to Shivam Thakral, CEO of BuyUcoin, heavy liquidations contributed to Bitcoin's failure to break through this barrier.

Impact of US Economic Data on Market Sentiment

Thakral emphasized the potential impact of upcoming US economic data on investor sentiment and global financial markets. The release of this data could significantly influence the direction of financial markets worldwide.

BTC Dominance Declines, Alts Gain Strength

CoinDCX research team observed a continued decline in Bitcoin dominance, potentially paving the way for altcoins to strengthen. While most token funding rates remained neutral, altcoins exhibited mixed performance during this period.

Bitcoin Consolidates Around $68,500

Rajagopal Menon, VP of WazirX, noted that Bitcoin is consolidating around the $68,500 mark after failing to maintain the crucial $70,000 level. Menon warned of potential bearish trends and weakening buying pressure if BTC drops below $68,000.

Ethereum's Upward Momentum Halts

Ethereum experienced a temporary setback in its upward trend, dropping nearly 2 percent, marking its first downward movement in two weeks. Despite this, Ethereum remains poised to surge to a new yearly high, trading at approximately $3,906.

Support Levels and Market Sentiment for Ethereum

Menon highlighted Ethereum's strong buying interest as it climbed above $3,800, indicating solid market sentiment. Despite overbought conditions suggested by an RSI of 72, key support levels for Ethereum are identified at the 50-day EMA ($3,225) and 100-day EMA ($3,170).

Potential Bearish Trends for Bitcoin

Menon cautioned about potential bearish trends for Bitcoin, with the daily chart and 50-day moving average indicating downward momentum. A drop below $68,000 could lead to tests of the $65,000 and $62,000 support levels, signaling weakening buying pressure.

Conclusion

Despite challenges, Bitcoin and Ethereum remain resilient in the face of market fluctuations. Investors should monitor key support levels and market sentiment closely to navigate potential volatility effectively.