Bitcoin’s price drops below important long-term average, triggering a widespread crypto market sell-off.
Bitcoin’s price has plummeted below the crucial 200-weekly moving average (WMA), leading to a significant sell-off across the crypto market. Within the last 24 hours, BTC price experienced a decline of over 5%, briefly dropping below $26,100. In addition, Ethereum (ETH) price also fell by more than 5%, dipping below $1750. This sharp decline has resulted in a freefall for the entire crypto market as the selling pressure intensifies.
Bitcoin Price Breaks Key 200WMA
Over the past seven days, the price of Bitcoin has been consistently dropping and struggling to maintain support levels. There are various factors contributing to this downward trend, including general market uncertainty in both the crypto and traditional markets, the prevalence of meme coins, and liquidity concerns. The challenges facing Bitcoin are far from resolved, as the month of May is expected to be a critical period for both the crypto market and traditional financial markets.
The price of Bitcoin experienced a temporary drop below the significant 200-weekly moving average (WMA) level, which is an important signal for price trends in the crypto market. This decline occurred after Bitcoin had previously risen above this level in mid-March. Technical indicators like Bollinger Bands and RSI suggest a weakening of Bitcoin’s upward momentum, indicating a possible further decline to around $24,600.
Bitcoin Price in Weekly Timeframe. Source: coingape
Based on the 1-hour and daily timeframe, the price of Bitcoin is displaying indications of additional decline. Presently, Bitcoin’s price is above the 100-day moving average (DMA), but it is expected to break below this level in the near future. The relative strength index (RSI) has dropped to 34 today, indicating a weakness in Bitcoin.
Additionally, the Ethereum (ETH) to Bitcoin (BTC) ratio is displaying weakness, and altcoins are undergoing a correction. The ETH/BTC pair was unable to surpass the 0.069 level, which was necessary for a bullish move and the start of an altcoin season. On the contrary, the ETH/BTC ratio fell to 0.066 in the past few days.
Bitcoin Price in Daily Timeframe. Source: coingape
At the same time, the implied volatility (IV) for Ethereum (ETH) has reached lower levels, with short-term IV reaching an all-time low across all timeframes. This indicates a decrease in expected price fluctuations for ETH. However, there is a risk of Ethereum’s price dropping to $1500 if it breaches important support levels.
