Home Bitcoin Bitcoin Prices Fall Through Key Technical Levels. The Worst May Not Be Over.

Bitcoin Prices Fall Through Key Technical Levels. The Worst May Not Be Over.

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Bitcoin Prices Fall Through Key Technical Levels. The Worst May Not Be Over.

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Bitcoin

slipped and other cryptocurrencies were mixed on Monday after a dramatic selloff late last week that plunged digital assets through key technical levels that could pave the way for even further declines.

The price of Bitcoin has fallen less than 1% over the past 24 hours to $26,050, stabilizing around the $26,000 mark after last week’s drop took the largest crypto to as low as around $25,500 from $29,000.

“The market is still above the previous local lows of June, giving hope for a continued uptrend. However, it is worrying that July’s highs are lower than April’s,” said Alex Kuptsikevich, an analyst at broker FxPro. “Bitcoin closed the week with a notable drop below its 200-week and 200-day moving averages, signaling a shift to a bearish trend.”

The selloff that hit Bitcoin marked a seismic shift in crypto markets, which up until last week were in a period of historically stagnant trading. After weeks of lagging excitement in the stock market—where the


Dow Jones Industrial Average

and


S&P 500

have been volatile—Bitcoin swung into action late last week in a drop that shocked markets and had traders looking to lay blame.

With cryptos holding below key technical levels, analysts are eyeing Bitcoin as vulnerable for further declines.

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“The decline has taken it below short-term support and its 200-day moving average … putting next and more important support near $25,200 in reach,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. “The setup supports a breach of $25,200, which would further increase downside risk for Bitcoin. Secondary support is roughly $20,600.”

Beyond Bitcoin,


Ether

gained less than 1% to $1,675, though the second-largest token has seen similar declines to Bitcoin in recent days. Smaller cryptos, or altcoins, were mixed, with


Cardano

up less than 1% by


Polygon

slipping less than 1%. Memecoins were more firmly in the red, with


Dogecoin

down 2% and


Shiba Inu

shedding 3%.

Write to Jack Denton at jack.denton@barrons.com

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