Bitcoin and Ethereum Prices Plunge: Will There be More Declines?

• Bitcoin (BTC) was one of the cryptocurrencies affected by the mass sell-off in the last 24 hours.
• The biggest losses were experienced by MATIC, EOS, and ADA. Polygon (MATIC) fell more than 26% and dropped below $0.60.
• Technical indicators show that the price will drop towards the next critical support level of $25,270 in the next 24-48 hours.

The global crypto market value dropped by more than 5% in the last 24 hours. The sharp drop in Bitcoin triggered a downward trend for all cryptocurrencies.

Crypto Market Experienced a Deep Drop

The global crypto market value dropped by more than 5% in the last 24 hours. The main reason for this drop is SEC’s attack on Binance and Coinbase, which brought the total value down to about $1.05 trillion at the time of writing. Bitcoin (BTC) was one of the cryptocurrencies affected by the mass sell-off in the last 24 hours.

BTC’s price is trading at $25,660 with a 3% drop in the last day. Furthermore, the recent price movement has further negatively affected the leading cryptocurrency’s weekly performance. BTC’s price has dropped by 5.5% in the last 7 days.

Despite the 24-hour drop in price, BTC managed to outperform its biggest rival Ethereum (ETH) by 0.96%. The daily trading volume also increased by 24.27%. As a result, BTC’s 24-hour trading volume was $16.8 billion at the time of writing.

The biggest losses were experienced by MATIC, EOS, and ADA. Polygon (MATIC) fell more than 26% and dropped below $0.60. EOS is trading at $0.67 with a 24% drop. Cardano (ADA), the 8th largest cryptocurrency, dropped by 24% and fell to $0.24.

Bitcoin’s Current Technical Status

Technically, Bitcoin’s price has fallen below the important support level of $26,200 in the last 24 hours and has continued to trade below this level. Technical indicators show that the price will drop towards the next critical support level of $25,270 in the next 24-48 hours.

At the time of writing, BTC is positioned below the 9-day EMA line and the 20-day EMA line. This is a sign that BTC is in a short-term downward cycle and will continue to fall in the coming days.

If BTC’s price falls below the aforementioned support level of $25,270 in the next 24 hours, it will face the risk of falling to $23,800 in the next week. However, bulls may see this potential drop below $25,270 as a buying opportunity and take action to push BTC’s price back above the important level.

On the other hand, if BTC’s price remains above this level for the next 48 hours, it may consolidate between $25,270 and $26,200 or show an upward trend in the coming days. If BTC’s price rises soon, it may regain its position above $26,200 and turn the level into support again.