Bitcoin price failed to clear the USD 19,500 zone and started a sharp decline. BTC broke many supports near USD 19,000 and USD 18,800 to move into a bearish zone. The price declined over 5% and it is currently (05:00 UTC) trading below USD 18,000.
Moreover, there was a sharp decline in most major altcoins, including ethereum, XRP, litecoin, EOS, XLM, LINK, BNB, TRX, bitcoin cash, and ADA. ETH/USD declined from well above USD 580 and it traded close to the USD 500 level. XRP/USD declined over 10% and it broke the USD 0.600 support zone.
“Conditions are very massively overbought and bound for a correction,” Vijay Ayyar, head of business development with crypto exchange Luno, told Bloomberg. “So I don’t think it’s unusual frankly. I still believe we’ll see all-time highs before a larger drop/correction.”
Also, economist and trader Alex Krüger recently argued that “[altcoins] usually move in the *same direction* of bitcoin, but more (in both directions)” and you “can think of [altcoins] as leveraged bitcoin plays.”
Total market capitalization
There was a sharp bearish reaction in bitcoin price after it broke the USD 18,800 support zone. BTC declined over USD 1,500 and it broke the USD 18,000 support. The price traded close to the USD 17,000 level and it is currently recovering higher. On the upside, the USD 18,200 and USD 18,500 levels might act as strong resistance.
An initial support on the downside is near the USD 17,500 level. The first major support is near the USD 17,200 level, followed by the main USD 17,000 support.
Ethereum price broke the key USD 580 support level to start the current drop. ETH traded below the USD 550 and USD 540 support levels. It tested USD 510 before recovering above USD 530. On the upside, the recent breakdown zone at USD 550 might act as a resistance.
An initial support is near the USD 520 level, below which the bears might aim for a downside break below the USD 500 handle in the near term.
Bitcoin cash, litecoin and XRP price
Bitcoin cash price dived more than 15% and it broke the USD 320 and USD 300 support levels. BCH even tested the USD 270 level and it seems like there are chances of more losses. The main support is near the USD 250 level. Conversely, the USD 300 and USD 320 levels might act as hurdles.
Litecoin (LTC) broke the USD 80.00 support to follow bitcoin and ETH decline. LTC is down 10% and it is trading near the USD 76.50 level. The next key support is at USD 75.00, below which the price might test the USD 70.00 support level in the near term. If there is a fresh increase, the bulls might struggle near USD 82.00.
XRP price declined heavily after it failed to stay above the USD 0.600 support level. The price even traded below the USD 0.585 and USD 0.555 support levels. The next major buy zone for the bulls could be USD 0.520, below which they might put a strong fight near the USD 0.500 level.
Other altcoins market today
In the past few hours, many altcoins declined over 15%, including XVG, SUSHI, SNX, NANO, WAVES, RSR, LINK, ANT, ADA, LRC, DASH, and MIOTA. Out of these, XVG is down 25% and trading below USD 0.0070.
Overall, bitcoin price is correcting lower below USD 18,000. It seems like the current decline could gain pace below USD 17,500 and BTC might revisit the USD 17,000 zone in the coming sessions.