Crypto market Crash: Where Bitcoin and Ethereum are headed?

The Dropping MarketCap

Crypto’s total market cap topped $3 trillion at its peak and has since given back a staggering share of that value, dragging both Bitcoin and Ethereum toward levels few expected heading into the cycle. Here’s where the technicals suggest both assets go from here.

The current market cap level is the same as January 27, 2021. The total crypto market volume over the last 24 hours is $98.58B, which makes a 0.32% increase. The total volume in DeFi is currently $8.38B, 8.50% of the total crypto market 24-hour volume. The volume of all stable coins is now $84.23B, which is 85.44% of the total crypto market 24-hour volume.

Bitcoin plunges below 200 weekly MA:

Bitcoin has been extremely bearish, marking new lows every day. The price had been plunging continuously for nine weeks until it showed a green candle. Though it was an encouraging sign for the bulls to finally record some green candles, at least on the daily chart, the trend could not continue and the situation got even worse.

The Bitcoin price today is $21,026.61 with a 24-hour trading volume of $44,707,255,902. Bitcoin is down 0.79% in the last 24 hours. The current CoinMarketCap ranking is #1, with a market cap of $400,956,551,415. 

Bitcoin had support at $30,000, $28,000, at $25,000, and then at $23,000; however, the rout led by the bears didn’t bother much about these levels and the price started to plummet as low as $20,000. The support zone near $28,000 was really important as it saved the crypto market crash last year and that’s where we have 200W Moving Average Support. Bitcoin appears unlikely  to keep the support of $20,000 and is likely to drop more in the coming days. The next local support on the weekly chart is at $18,000 fib 0.786. All the previous support, on the Bitcoin chart, now has turned into resistance. To turn bullish again, Bitcoin  needs to cross the level of the $28,000 mark.

Bitcoin's fear and greed index is touching its lowest since last month. The Extreme fear and index analysis take information and data from ‘Multifactorial Crypto Market Sentiments Analysis’ and social feeds. Though it is a good source to analyze the market situation, it sometimes triggers FUD (Fear, Uncertainty, and Doubt) among crypto holders.

Ethereum: the oversold Situation

Ethereum is back where it was in January last year, just like Bitcoin. Comparing charts of both Bitcoin and Ethereum on a weekly timeframe, it’s difficult to tell which is which because Ethereum mimics the moves of Bitcoin, more than any other alt. However, Ethereum is down more than Bitcoin when we compare the all-time value and the current price of both crypto coins. Crypto Market Crash also hurts more when Ethereum drops as Ethereum-based ERC-721 protocol NFTs get devalued. 

The weekly chart shows that Ethereum is somehow holding the support level of fib 0.786. Ethereum has pretty strong support at $1000, and that’s where institutions might want to get in the trade; therefore, I don’t see a chance for Ethereum to drop below this level. Even if it did, it will be for a moment to liquidate the loose short positions and collect the buy orders. Ethereum has a resistance level of $1,600, just above the 200 weekly Moving Average.

Ethereum’s RSI sitting below 30 signals oversold conditions, and its weekly chart is still defending the 0.786 Fibonacci support near $1,000 — a level that, if it holds, gives bulls a real case for a relief bounce. If it doesn’t, the next leg down could be sharp.