The whole cryptocurrency market has drifted into a freefall as the Bitcoin price recently broke below the 200-Weekly Moving Average (WMA). Since mid-March, BTC had been rising beyond the 200-WMA and the current fall is significant as the key indicator of price direction in the crypto market. Further, Ethereum (ETH) price has also dropped by more than 5% over the last 24 hours and is trading below $1750.

Currently, the Bitcoin (BTC) price is trading above its 100 DMA, but technical indicators such as Bolllinger Bands and RSI, suggest that the crypto might face a potential decline to $24,600. Ethereum, on the other hand, has also not been able to breach the 0.069 level, which is necesssary for a bull-run and Ethereum season.

In the meanwhile, a key pointer to the peculiar shift in investor sentiment is the Implied Volatility (IV) for ETH which recently reached an all-time low. If this trend continues and the support levels are breached, Ethereum price could drop to $1500.

The crypto market outlook continues to look bleak, as the underlying macro, along with market uncertainty, meme coins season and liquidity issues have put crypto prices under selling pressure. With May being an integral month for the crypto and traditional markets, the crypto market will have to navigate these challenges in order to claw back towards stability.



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