Today, prices of various cryptocurrencies, including Bitcoin and Ethereum, are showing a decline. Let’s examine the reasons behind this phenomenon and the current market state.
Reasons for the Price Decline in Cryptocurrencies
Cryptocurrency prices have fallen between 1.5% and 7% over the past 24 hours. One reason for this decline appears to be shifting sentiment regarding Bitcoin and Ethereum. Technical signals and rejections at resistance levels of these assets are starting to negatively impact the broader market.
Analysis of Bitcoin and Ethereum
Bitcoin (BTC) has broken support as its price slipped below an ascending trendline after getting rejected at a key resistance level around $105,000. BTC is currently trading near the 200 EMA, and failing to hold above this level could signal further decline. Ethereum (ETH) also faced resistance at $2,677, and if it cannot maintain the support at $2,584, it might drop to the $2,455 area.
Overall Market Situation
Currently, market sentiment appears shaky. While the overall trend has been bullish in recent weeks, today’s correction seems to stem from a combination of technical rejections at resistance levels and fading momentum. The coming days could play a key role in determining whether this is just a temporary correction or the start of a deeper decline.
The cryptocurrency market is currently facing difficulties, and further developments largely depend on Bitcoin's ability to maintain key technical levels.
