Bitcoin and ETH Resume Downtrend, AVAX At Risk of Sharp Drop

Bitcoin and ETH Resume Downtrend, AVAX At Risk of Sharp Drop

Key Insights:

  • Bitcoin is gaining pace below the $40,000 level.
  • Ether (ETH) traded below the key $3,000 support zone.
  • AVAX is signaling a major downside break below $75.

Bitcoin

After facing a strong selling interest, the bitcoin price started a fresh decline from the $43,000 zone. There was a clear move below the $40,950 support zone.

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There was a break below a key bullish trend line with support near $41,900 on the hourly chart. It even traded below the $40,000 support and settled below the 21 simple moving average (H1). The current price action is bearish and seems like the bears are aiming for a test of $39,000.

The next major support is near the $38,550. Any more losses could send the price towards the $38,000 level in the near term.

Ethereum (ETH)
ETH also followed a similar pattern and started afresh decline from the $3,165 resistance zone. There was a move below the $3,100 support zone.

Ether declined below a major bullish trend line with support near $3,020 on the hourly chart. It settled below the $3,000 level and the 21 simple moving average (H1). The next major support is near the $2,930 level.

A downside break below the $2,930 support could push the price lower towards $2,840. On the upside, the previous support at $3,035 and the 21 simple moving average (H1) might act as a strong resistance.

Avalanche (AVAX)
AVAX attempted a major upside break above the $100 resistance. However, the bulls failed to gain strength above the $100 level.

A high was formed near $104 and the price started a major decline. There was a downside break below the $88 support level and the 21-day simple moving average. The price declined below the 50% Fib retracement level of the upward move from the $65 swing low to the $104 high.

AVAX is now attempting a close below a crucial bullish trend line with support near $75 on the daily chart. If the bears succeed, the price could nosedive towards the $65 support. Any more losses may perhaps call for a test of the main $55 support zone in the coming days.

ADA, BNB, and DOT price
Cardano (ADA) is down 5% and traded below the $0.90 support level. The key support is near the $0.865 level, below which it could test $0.85.

Binance Coin (BNB) is slowly moving lower towards the $402 and $400 support levels. If there is a downside break below $400, the price might slide towards the $382 level in the near term.

Polkadot (DOT) is down over 5% and there was a move below the $19.00 level. It seems like the price might continue to move down towards the $18.00 support level.

A few trending coins are GMT, AMP, and LEO. Out of these, AMP is showing positive signs above the $0.0234 level.

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