Bitcoin (BTC) has taken a notable plunge from its vital $100K support level, and analysts are now suggesting a potential 25% pullback could be on the horizon. Ethereum (ETH) isn’t immune to the chaos either, experiencing a 9% drop and giving up its key support of $3,550, while Solana (SOL) has seen its price crack below $200. This has left many investors wondering, what’s next?
As the crypto market crash unfolds, liquidation figures have skyrocketed, exceeding $1 billion, with Bitcoin dipping to levels around $95,000. Other altcoins like ETH, SOL, and DOGE are also facing intense selling pressure, correcting between 8% and 13%. Though Bitcoin’s pullbacks are typical in market cycles, apprehension lingers about how much further the BTC correction may run.
Can the Crypto Market Crash Send BTC Prices Even Lower?
BTC is gearing up for a potential 25% drop to $80,000. The ongoing panic-driven selloff has sent Bitcoin spiraling further from its crucial $100K support. Analysts predict a 25% retreat from Bitcoin’s all-time high of $108K isn’t just possible, but likely. Crypto expert Rekt Capital has emphasized that anyone doubting such significant pullbacks should look to March-August’s -34% correction as a reference point, highlighting how familiar this scenario is. If past trends repeat, we could see BTC correct back to $80,000.
Looking at its current state, Bitcoin trades around $96,828, a 4.2% dip with a market cap of $1.92 trillion. Analyst Ali Martinez has marked the crucial support zone for Bitcoin as $98,830 to $95,830, where 1.09 million wallets amassed over 1.16 million BTC. Coinglass data showcases a 5% drop in Bitcoin’s open interest and a surge of $217 million in 24-hour liquidations, predominantly long positions. Despite the downturn, the Bitcoin Fear and Greed Index sits firmly in the “Greed” zone, scoring 74.
Analysts perceive that the crypto market correction might linger amid rising Dollar Index (DXY) figures. Justin Bennett remarked, “110.00 has been my US dollar target since the 102.60 reclaim, and I’m betting that area marks the crypto bottom in early 2025.”
Altcoins ETH, SOL, and DOGE Bear the Brunt of Stronger Corrections
ETH has also succumbed to the mayhem, losing its critical support level of $3,500 after dropping 9% just in the last day and currently trading at $3,346. Speculation suggests it might retest the $3,000 mark before finding its footing again. Notably, a surge in selloff activity from Ethereum whales has been reported. LookonChain noted that in the past few hours, one whale transferred 22,746 ETH valued at $77.7 million to Binance, subsequently withdrawing stablecoins to settle debts.
On the brighter side, analysts remain optimistic about ETH’s future, likening $4K to $1.4K from the previous cycle. Ted Pillows notes, “Right now, the same thing is happening with the $4K level, but there will be a breakout soon.”
Solana’s price has slipped below $200, trading at $193 as it continues to maintain a lackluster performance since hitting a high of $263 in November. Analyst Lieutenant Ponzi pointed out a significant order block on SOL’s weekly chart, indicating that the $165-$170 range may serve as a critical support area or potential reversal point.
DOGE Takes a Heavy Hit Amid the Chaos
Dogecoin (DOGE) has also faced a rough patch, tanking 13.5% and currently sitting at $0.31. This has extended its weekly losses to over 22%. According to Coinglass, DOGE’s open interest has plummeted 20%, leading to $55 million in liquidations. Despite this setback, optimism persists with analysts like BALO stating that a close above $0.26 is necessary to sustain bullish trends. If DOGE manages to reclaim the $0.42 mark, BALO projects a potential leap to $4.
As this tumultuous landscape continues, investors are left to ponder the road ahead. Do keep an eye on those critical support levels and market trends. Always do your homework before investing, and let’s see where this rollercoaster ride leads us next!
