Price movements in Bitcoin and altcoins are following a calm course. This calmness has now become frightening. Now there are concerns that there will be a big drop.
Concern for bitcoin price
Bitcoin (BTC) price was rejected from the long-term resistance at $31,000. It also formed a bearish pattern. It is likely to drop in the near future. At the beginning of June, Bitcoin experienced an impressive recovery from the $25,000 level. After that, Bitcoin (BTC) price was once again rejected by the long-term resistance at $31,000. This is clearly demonstrated by the bearish Pinbar candlestick (red arrow), which confirmed the strong selling pressure from higher levels last week.
When we combine the current peak with the one formed on April 10, we see the presence of a Double Top formation. This is a bearish pattern that usually leads to a downtrend. Also, the bearish divergence on the weekly RSI indicator further reinforces the strength of the pattern. Therefore, Bitcoin price is likely to decline in the near future and a key support level is at $25,300.
Bitcoin Weakening
Bitcoin price has been trading in the $29,500 to $31,000 range since June 21. Accordingly, there is a conflict between the bulls and the bears. However, the bears seem to have the upper hand as every recovery from the $29,500 region over the past few days has been stalled by the 20-day EMA ($30,031). This indicates a lack of purchasing power at higher levels. The daily RSI indicator also formed a bearish divergence. It is also currently in the process of falling below the 50 level.
As a result, BTC price is likely to decline below the $29,500 support level in the next few days. The potential target for this move is the $27,500-$28,300 support zone formed by a sideways support level and the 0.5-0.618 Fibonacci support level of the recent upward move.
Important notice for altcoins
Benjamin Cowen explained that he believes altcoins can still drop by 40%-50% against BTC. BTC dominance is 48.54% after increasing 0.27% in the last 24 hours. The total altcoin market cap was at a significant support level at the time of writing, with $575.048 billion.
Benjamin Cowen, CEO and co-founder of Into The Cryptoverse, predicted on Twitter earlier today that the “altcoin showdown” is not over yet. Cowen also predicted that altcoins could drop by 40-50% against the crypto market leader Bitcoin (BTC).
Altcoins still likely to drop 40-50% against #BTC before the altcoin reckoning is over.
We had the SEC vs. Ripple news and BTC dominance has so far held the prior breakout level of 49%.
It’s about liquidity more than anything, and that continues trending down. pic.twitter.com/MDftLsVav8
— Benjamin Cowen (@intocryptoverse) July 23, 2023
Cryptocurrency market overview
BTC dominance is at the level of 48.54% at the time of writing. This represents an increase of 0.27% compared to the previous trading day. Also, the majority of the top 10 altcoins by market cap have seen their prices drop in the past 24 hours. Meanwhile, Ethereum (ETH), the largest altcoin by market cap, changed hands at $1,874.28 after its price fell 0.96%.
Ripple (XRP) and Solana (SOL) have seen their prices drop more than 3% in the past 24 hours. As a result, these cryptos were worth around $0.7414 and $24.74, respectively. When we look at Kriptokoin.com, the price of Dogecoin (DOGE) also fell by 0.60%. Despite this, the weekly performance of the meme coin is still up 1.68%.
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