• The recent crypto market sell-off has caused $1 billion in liquidations, led by Bitcoin (BTC) and many major altcoins.
• Analysts are uncertain how low the markets will go, but support levels at $24,800 for BTC and $1,816 for ETH are key to watch.
• Experts advise caution and suggest that traders need to be prepared for further downside potential.
The crypto market sell-off has been intense lately with Bitcoin (BTC) leading the way and dragging most major altcoins down with it. This resulted in an astonishing $1 billion in liquidations for derivatives traders, the biggest amount since the FTX collapse in 2022. The exact cause of this broad decline is still unknown, though some analysts believe that confusion surrounding SpaceX’s alleged write-down of its $373 million i Bitcoin holdings may have been a contributing factor.
Bitcoin Price Analysis
The sharp fall on Aug 17th triggered long liquidations which pulled the price of BTC down to $25,166. Bulls are expected to defend the $24,800 level as there is a strong oversold signal on the relative strength index (RSI). A rebound off this level could result in a move up towards the 20-day exponential moving average (EMA) of $28,786. However if prices turn down from this EMA then it could indicate that bears are selling on rallies which would lead to a break below $24,800 and possibly a drop all the way down to around $20k.
Ether Price Analysis
Ether (ETH) followed suit with BTC and broke below immediate support at $1,816 showing that bears were firmly in control here too. The selling pressure grew even more on Aug 17th pushing ETH/USDT pair below critical support levels at both its 50-day simple moving average (SMA) ($1,764) and its 200-day SMA ($1,744). If these levels fail to hold then ETH could continue dropping further towards next major support at around $$1400 -$1600 range before buyers appear again as this is where previous uptrends started from earlier this year.
Most other altcoins followed suit with BTC and ETH with Binance Coin (BNB), XRP , Cardano (ADA), Solana(SOL), Dogecoin(DOGE), Polkadot(DOT), Matic Network(MATIC) and Litecoin(LTC ) all dropping significantly during this sell off . In general it seems like most altcoins are going through downtrends or consolidating so caution is advised when trading as there is still more downside potential present here before any real recovery can take place .
While it’s difficult to predict exactly how low cryptocurrencies might go during this current market slump , keeping an eye out for key support levels such as those mentioned above can help traders stay informed about when buying opportunities may arise . As always , investors should only trade what they can afford to lose while exercising caution regarding their risk exposure .