The crypto market has always been highly volatile, and recent months have been no exception. Savvy crypto traders, armed with crucial information, made strategic decisions to exit the market before the bearish trends of August and September took hold. With the market anticipated to rise again soon, traders are left pondering just how far the prices might fall. Notably, Bitcoin has not shown any bullish signals across several time frames, leading to a significant drop in Bitcoin’s fear and greed index, now below 25 percent, indicating extreme fear of further market capitulation.
Major Crypto Targets to Watch Ahead
Bitcoin (BTC)
The last time Bitcoin closed lower than its current price was on February 25, 2024. The prolonged low demand among institutional investors has significantly impacted Bitcoin’s midterm bullish sentiment. This is evident from the substantial cash outflows from spot BTC ETFs over the past two weeks. From a technical perspective, Bitcoin’s price is currently retesting the lower boundary of a descending correction channel that began in March.
If Bitcoin closes the week below $54K and continues to flirt with this support level, there is a high probability of further correction towards the support range between $46K and $50K. Investors are closely monitoring these levels to make informed decisions.
Ethereum (ETH)
Ethereum has experienced a bearish trend for the past five months, which has intensified following the approval of several Ether ETFs in the United States. With a fully diluted valuation of approximately $277 billion and a daily average trading volume of around $27 billion, Ethereum faces potential further declines if Bitcoin fails to regain bullish momentum in the near term.
Technically, ETH is retesting a crucial support level against the US dollar, which could prompt a rebound. However, if Ethereum consistently closes below the rising trend established year-to-date, it may face additional weakness in the short term.
Altseason’s Timeline
Despite Bitcoin’s dominance over the past two years, a rising rotation of crypto investments towards altcoins suggests the onset of a much-anticipated altseason. Nevertheless, due to the positive correlation between altcoins and Bitcoin, many altcoins are likely to continue experiencing declines if Bitcoin’s bearish sentiment persists.
Investors are advised to keep a close watch on market trends and correlations to make strategic decisions during this period. While the crypto market holds potential for significant gains, it also requires careful navigation to avoid substantial losses.
