Bitcoin Price Could Retest $5,000, Ripple and Ethereum Tumble

Bitcoin price declined heavily recently and moved below $7,000 against the US dollar. BTC/USD is currently under a lot of pressure and it seems to be eyeing a test of $5,000.

A major downtrend was initiated from the $17,000 swing high in btc to usd. The price tumbled by more than 70% and it recently traded below the $7,000 level. The Bitcoin market cap is down from $320,000,000,000 USD to well below $110,000,000,000 USD (as per coinmarketcap). Both Ethereum and Ripple too faced a lot of sellers and moved below $700 and $0.7000 respectively.

Key Points

• Bitcoin price is currently under a lot of pressure and it looks set for a move towards $5,000 against the US Dollar.
• There is a major support sitting on the downside at $5,400 and $5,000 on the daily chart of the BTC/USD pair.
• The pair is likely to find strong buying interest near the $5,400 and $5,000 support levels.

Bitcoin Price Forecast is Bearish Short-term

We saw a major top in bitcoin price around the $19,800 level against the US Dollar. The BTC/USD pair is down by more than $12,000 and is currently trading below the $7,000 level.

The pair recently broke a significant support area near $9,950 on the daily chart. It ignited further declines and the price declined below the $8,000 and $7,000 support levels.

More importantly, the pair is now well below the 100-day and 150-day simple moving averages, which is a bearish sign below $8,000 (data feed via bitfinex). Furthermore, the price fell below the 50% Fibonacci retracement level of the last wave from the $3,048 low to $19,875 high.

Why $5,000 is important for BTC/USD?

On the downside, the next major support sits around the $5,400 and $5,000 levels on the daily chart. The mentioned levels could be considered as a strong pivot zone.

Therefore, there are high chances of buyers attempting to prevent further declines below $5,000. If at all sellers succeed in pushing the price below, there could be a test of $3,048 swing low.

On the upside, the broken support at $9,000 and $10,000 are likely to act as a resistance levels. Overall, the market is in deep red, and it could continue to tumble.

XRP/USD also faced a lot of sellers and it even failed to hold the key supports mentioned in the Ripple Price Weekly Forecast. Similarly, Ethereum crumbled and declined below the $700 support area. The next major support in ETH/USD sits at $550.

Today’s SEC meeting could be a game changer for the cryptocurrencies in the short term. Therefore, be careful traders and do not chase the current downside move in the cryptocurrency market as it can extend a bit further and surprise investors.

Trade safe traders and enjoy the ride!!!