The cryptocurrency market opened the week with a significant decline. Over the past 24 hours, Bitcoin has fallen 5%, briefly dropping below the $91,000 mark, setting a new monthly low. Other major cryptocurrencies also saw widespread declines: Solana (SOL) fell more than 16%, Ethereum and XRP dropped 12%, while BNB saw a relatively "mild" 6% decline. Over 90% of the top 100 tokens by market cap recorded losses.
Coinglass data shows that as of the time of writing, the 24-hour crypto liquidation amount reached a staggering $950 million, with long positions being the majority. A total of 314,902 traders were liquidated globally.
Bitcoin: The 200-day moving average will determine the future direction
TradingView chart analyst Tomarket states that the BTC/USD daily chart shows the price is currently in a consolidation phase, with the fluctuation range confined within a clear range (the blue rectangular area in the chart). This pattern indicates that the market is in a stalemate between bulls and bears, with neither side having a clear advantage.
From a technical perspective, the key resistance level is in the $100,000 to $103,787 range. Breaking above this level could trigger a new round of uptrend, with targets at $108,734 to $110,266. On the other hand, the short-term support level is in the $96,484 to $97,065 range, and a break below could lead to more selling pressure. In the long term, the $89,533 to $84,773 area (the 200-day moving average) is an important support level, which has historically been a strong demand zone in trending markets.
The 200-day moving average ($84,773) is a critical long-term support level, and if the price retraces to this area, it may attract buying interest.
In terms of potential market direction, if the price breaks below $96,000, it may indicate increased selling pressure, leading to further downside to the $89,533 to $85,000 area, or even a breach of the 200-day moving average, triggering a deeper correction. If the price breaks above $103,787, it could signal the continuation of the uptrend, with targets at $108,734 and $110,266, and potentially a new all-time high above $120,000.
In summary, Bitcoin is currently in a consolidation phase, and the 200-day moving average is a key long-term support level. Traders should closely monitor the price performance in these critical areas to gauge the market's next move.
Ethereum faces significant downside, market sentiment turns cautious
One possible reason for Ethereum's poor performance is that some traders had previously expected Bybit to make large purchases of ETH in the open market to offset their losses, but this assumption did not materialize, forcing traders to close their positions.
Data shows that on February 24th, Ethereum futures open interest decreased from 8.82 million ETH to 8.52 million ETH, indicating that traders are closing their leveraged positions. Well-known cryptocurrency analyst Crypto Rover warned on Twitter that if Ethereum (ETH) continues to decline significantly, it may raise concerns about the sustainability of the Altcoin season.
On-chain data shows that the number of active Ethereum addresses has decreased by 7% to 450,000 in the past 24 hours, suggesting that network activity may be declining. From a technical analysis perspective, the ETH price has broken below the 50-day moving average, indicating bearish momentum. @Manofbitcoin on X platform analysis suggests that the support level for ETH is between $2,512 and $2,305. Only a sustained break above $2,919 would confirm an uptrend.
In summary, Ethereum is currently facing significant downside pressure, and market sentiment is turning cautious. The impact of leverage unwinding and the aftermath of the Bybit event have exacerbated price volatility. The potential decline in ETH price may have a cascading effect on the Altcoin market, and investors need to closely monitor key support levels and changes in market sentiment.
