Bitcoin has lost its footing around $55,000, triggering one of the largest liquidations in cryptocurrency market history. Given the dire state we are in, it is important to identify and highlight a threshold that could serve as a basis for a reversal in the foreseeable future.
The first significant support level for Bitcoin is likely to be between $52,000 and $50,000. The psychological round number effect makes this range important. Moreover, historical evidence suggests that this range has previously functioned as resistance and support, making it critical for a possible reversal.
Looking at the weekly chart, we see that the $47,000 level is critical. This level corresponds to the weekly 200 EMA and refers to the previous consolidation phase. The 200 EMA is considered by many to be a long-term support level, and a rebound from this level could give Bitcoin the boost it needs to start moving higher again.
If Bitcoin were to fall from this level, it could signal a more significant correction. The $42,000–$40,000 range is the next support zone worth noting. Historically, this region has served as a solid support level and the base for significant corrections. Its significance is increased by the fact that the 200 EMA on the daily chart is also in this range. Maintaining this level could stop more significant declines and even pave the way for a rebound.
Toncoin’s Biggest Crash
Toncoin (TON) has seen perhaps the biggest percentage price drop in 48 hours. The Telegram-backed asset has lost around 20% of its value and dropped from around $8 to $6.6, effectively erasing all of its gains since the start of the month.
There are several reasons for the sudden drop in Toncoin’s value. First, a number of cryptocurrencies have seen major sell-offs as a result of the overall bearish market sentiment. The market, including Toncoin, has been hit by Bitcoin’s recent fall below important support levels.
TON price has crossed the 50 EMA and is currently hovering around the 100 EMA, according to technical indicator analysis. While there have been strong support levels at this level in the past, there are concerns that it may not hold this time due to the severity of the recent sell-off.
Additionally, there is a noticeable decline in the Relative Strength Index (RSI), which suggests that Toncoin is approaching the oversold area. Prices may continue to decline, although there is a possibility of a short-term rally due to the overall bearish momentum.
Solana’s Unexpected Source of Power
The one thing you wouldn’t expect amid this catastrophic market decline is a strong move higher from one of the assets that should have been following the market more than others. Solana is showing positive momentum against Ethereum, which could be a signal that shouldn’t be ignored.
Especially considering the overall pessimism in the market, Solana’s recent results are impressive. Solana managed to grow by 8% during a significant decline in major assets such as Ethereum and Bitcoin.
This suggests that there may be hidden bullish factors and that investor confidence is strong. Looking at the daily chart, Solana is now targeting the 100 EMA after breaking above the 50 EMA, a key resistance level. This upward trend is particularly notable as it stands in stark contrast to Ethereum’s downward trajectory.
Additionally, it appears that more buying pressure and momentum are supporting Solana’s price action, as evidenced by the rising Relative Strength Index (RSI). However, it is important to remember that Solana is still losing value against the US dollar.
