Bitcoin Plummets Below $59,000 as Ethereum Targets $2500, Altcoins in Consolidation Mode

Over the past weekend, the cryptocurrency market experienced a shift from bullish to bearish sentiments, particularly impacting Bitcoin. Significant selling pressure caused Bitcoin to erase half of the gains it had made in the previous week. Uncertainty looms among the bulls regarding the next price movements, while the bears seem prepared to enter the market at opportune moments. As a result, a bearish shadow continues to loom over the BTC price, with the token currently fluctuating within a critical range.

Bitcoin’s price is currently moving within a descending parallel channel, and following a recent rejection, a potential drop towards the lower support level seems likely. The repeated failure to break through resistance levels indicates a notable weakening of bullish momentum. Additionally, indicators such as +Di & -Di have diverged, avoiding a bullish crossover, with the RSI signaling bearish conditions.

In this scenario, Bitcoin’s price seems set to continue its downward trajectory towards the support zone ranging from $56,099 to $56,813 if bearish pressure persists. Failure to maintain these levels could lead to a further decline towards the lower support of the channel, possibly below $54,000. Conversely, Ethereum is demonstrating relatively more strength and hints at a possible rebound.

Looking at Ethereum’s price action, there have been minor losses recently, with efforts by bulls to sustain trading above $2500. This has kept hopes for a bullish reversal somewhat tempered. Despite a decrease in volume, buyers have maintained a dominant position. A potential rebound could be imminent, especially if the price surpasses $2682, alleviating concerns of a significant downturn.

The MACD indicator for Ethereum is currently bullish and nearing a potential bullish crossover. This development could signal a forthcoming increase in the price of Ethereum (ETH), potentially pushing it back above the $3000 mark.

In conclusion, the cryptocurrency market, particularly Bitcoin and Ethereum, is witnessing fluctuations and potential shifts in momentum. Traders and investors are closely monitoring key levels and indicators to gauge the direction of these digital assets amidst the ongoing market dynamics.