A crash in the crypto market! Bitcoin falls to $42,800

A crash in the cryptocurrency market! Just yesterday we wrote about Bitcoin

‘s bullish breakout above the long-term $51,200 area, and today the largest cryptocurrency fell to a low of $42,800. Sponsored Sponsored

The other cryptocurrencies are losing even more. Most of them lost up to 30% of their value today. The only altcoin

from the TOP 10 that is not worried about the declines and continues to grow is Solana.

Bitcoin loses 19%

Bitcoin (BTC) fell today by 19% counting from the peak at $53,000 to the low at $42,800. The price fell sharply between 3:00 pm and 5:00 pm ET, after BTC started to close consecutive hourly candles below the long-term $51,200 area. Moreover, this level coincides with the 0.618 Fib retracement of the entire May downward movement.

Sponsored

Cascading declines ended in the long-term support area at $42,800, which is a horizontal support level at the 0.382 Fib retracement (green rectangle). Thus, if this level is lost in the next few days, the next support is in the area of $37,500, at the 0.236 Fib retracement level.

A crash in the crypto market! Bitcoin falls to $42,800Krach na rynku BitcoinBTC chart courtesy of Tradingview The

sharp capitulation was followed by a significant upward bounce of 10%. Bitcoin quickly returned to the 0.5 Fib retracement area and is trading at $46,800 at the time of this writing.

The decline took place on relatively high volume, which could signal the beginning of a bearish impulse. If this happens, the declines could continue until the price re-approves the $42,800 area as support.

The chance of this scenario is strengthened by the loss of important support at the 0.618 Fib retracement. Two days ago there was a false – as it turned out today – breakout when BTC clearly broke above the $51,200 level

. Typically, this is a very bearish signal that reinforces the strength of the downward move.

Altcoins Bleed Harder

Almost all major altcoins saw drastic declines today, usually bigger than Bitcoin. For example, counting through the entire length of the candle including the wicks, Ethereum (ETH) lost 24% today and recorded a bottom at $3009, Cardano (ADA) 30% with a bottom at $2, Chainlink (LINK) 33% and $23.79, and Dogecoin (<a

href=”https://beincrypto.pl/learn/jak-kupic-dogecoin/” target=”_blank” rel=”noopener”>DOGE) 31% and $0.21.

Data from CoinGecko shows that the total cryptocurrency market capitalization fell more than 14% today. In the morning, the value of the market oscillated around $2.48 trillion, to fall to the vicinity of $2.14 trillion for this moment.

A crash in the crypto market! Bitcoin falls to $42,800Krach na rynku kryptoTOP 11 cryptocurrencies according to CoinGecko

The only top altcoin that doesn’t seem to care about the market tumble is Solana (SOL). Solana opened the day at $164, recorded a brief bottom at $128 to trade at $173 at the time of publication.

The coming hours and days will show the significance and consequences of today’s crash. It remains to be seen whether this is just a temporary correction and a bear trap for over-leveraged long positions, or the beginning of a longer trend change.

Explanation

All information contained on our website is published in good faith and for general information purposes only. Any action taken by the reader in relation to the information on our website is solely at the reader’s own risk.