- Bitcoin is holding above a key support level, but if this level fails it may lead to a downswing towards $9,000.
- Ethereum whales have been “buying the dip” despite the strong possibility of prices declining below $300.
- Currently, the odds seem to favor the bears even with the big losses already incurred.
Share this article
The crypto markets lost $30 billion in value over the past day. Capital outflows from Bitcoin and Ethereum could cause prices to break below crucial support levels, indicating further losses on the horizon.
Bitcoin Drops to Critical Support Level
Following the 19% correction that Bitcoin experienced at the beginning of September, its price action began to form an ascending triangle on the 4-hour chart. A rising trendline developed along with the swing lows while a horizontal resistance was created along with the swing highs. This technical formation suggested that BTC was poised to rise towards $11,300.
The flagship cryptocurrency was indeed able to break out of the ascending triangle on Sept. 14 and surpass the $11,000 mark. However, Crypto Briefing noticed several bearish signs that did not support continued upward price action a few days later. Now, it seems like those sell signals were validated as Bitcoin took a 7% nosedive after failing to turn the 50-day moving average into support.
The recent downturn pushed BTC to the 100-day moving average, which is currently the only barrier preventing a steeper decline. If this support level were to break, prices could fall towards the 200-day moving average around $9,200.
Such a pessimistic scenario holds when looking at Santiment’s holder distribution chart. The behavior analytics firm shows that the number of addresses with millions of dollars in Bitcoin, colloquially known as “whales,” continues declining.
Since Sept. 11, the number of addresses holding 1,000 to 10,000 BTC has dropped substantially. Roughly 13 whales left the network or…