The cryptocurrency market has been hit hard by a sharp downturn, with Bitcoin reaching new low points that have pulled down altcoins alongside it. The ETH/BTC pair also faces decline with Bitcoin slipping beneath the $85,000 mark. All cryptocurrency investors are left contemplating a pressing question: how prolonged will this downturn be?
Why is Bitcoin Falling?
A downturn, symbolized by a bear flag breaking downward, coincides with the Bank of Japan’s anticipated decision that may raise interest rates. This potential hike has led to cryptocurrency enthusiasts minimizing their risks as market closure looms. A warning indicated deeper lows might surface in the week ahead.
Even with positive news on inflation, Bitcoin’s price has plummeted below $84,500. In recent months, BTC’s price movement appears to be mostly a liquidity chase. Skeptics argue today’s drops are justified, compelling observers to keep a close watch on the impending changes.
A failure by Bitcoin to recover the $90,000 threshold suggests that further sales could push the price down to $80,300. The risk is that if this level fails, losses could even extend to $76,000, foreseen by many experts.
Will Altcoins Recover?
If the Bank of Japan increases rates, stirring more unease, Bitcoin could rebound from its previous support zone between $76,588 and $74,500. Positive employment and inflation rapports could encourage a brief uptick, but specific movements will depend on how liquidity dynamics unfold.
Ethereum, Solana, and Ripple are also feeling the pressure as Bitcoin dips to deeper lows. The ETH/BTC pair is hanging just above the 0.03228 support. If it crashes below this point, prices could fall between 0.0299 and 0.0267, with ETH/USD eyeing $2730, and possibly even $2393.
• Ethereum has targets outlined at distinct lower limits, with eyes on $2730 first.
• Solana has already breached its $119 support, facing a possible dip to $112.
• Ripple’s current target sits at $1.62 after losing previous support at $1.98.
Solana suffers heavily in this downturn, having fallen into oversold territory. Breaking past the $119 support, the next stop is $112, with fears of potentially reaching $96 as the ultimate support.
“We’re seeing increased interest rate discussions that significantly impact investor decisions,” remarked a financial market observer.
Ripple too has lost its footing, descending from its $1.98 support to aim for $1.62. Meanwhile, broader geopolitical movements are stirring as U.S. lawmakers propose a ban on AI chip exports to China, adding another layer of complexity to the landscape.
