Crypto markets started a sharp drop in the week, Bitcoin fell below 91,000 USD hit a new monthly low, Ethereum faced a sharp decline, market sentiment tends to be cautious

Author: BitPush

The crypto market started a sharp drop in the week. Bitcoin has fallen 5% in the past 24 hours, once below the $91,000 mark, hitting a new monthly low. Other mainstream currencies generally fell: Solana (SOL) fell by more than 16%, Ethereum and XRP fell by 12%, BNB was relatively "moderate", down by 6%, and more than 90% of the top 100 tokens with market value suffered losses.

Coinglass data shows that as of press time, the amount of liquidated in the entire network in 24 hours was as high as US$950 million, mainly long orders, and a total of 314,902 people worldwide were liquidated.

Bitcoin: The 200-day moving average determines the future direction

TradingView chart analyst Tomarket said that the daily chart of Bitcoin (BTC/USD) shows that the price is currently in a volatile consolidation stage, and the fluctuation range is limited to a significant range (the blue rectangular area of ​​the picture above). This pattern shows that the market is in a stalemate between bulls and bears, and neither buyer nor seller has a significant advantage.

From a technical perspective, the key resistance level is in the range of $100,000 to $103,787. Breaking through this level may start a new round of gains, with the target being $108,734 to $110,266. On the other hand, short-term support is in the range of $96,484 to $97,065, and falling below it may trigger more selling pressure. In the long run, the $89,533 to 84,773 region (200-day moving average) is an important support level and has historically been a strong demand area in the trend market.

The 200-day moving average ($84,773) is a key long-term support level and may attract buying if the price pulls back to the area.

In terms of potential market trends, if the price falls below $96,000, it may indicate an increase in selling pressure, further down to the $89,533 to $85,000 area, and even losing the 200-day moving average triggers a deeper pullback. If it breaks through $103,787, it may trigger the continuation of the upward trend, with the targets aiming at $108,734 and $110,266, and may even break through $120,000 to hit record highs.

In summary, Bitcoin is currently in a volatile consolidation stage, and the 200-day moving average is the key long-term support level. Traders should pay close attention to the price performance of these key areas to judge the next direction of the market.

Ethereum faces a sharp decline, market sentiment tends to be cautious

One possible reason for the poor performance of ETH is that some traders had previously expected Bybit to buy ETH in the open market to make up for losses, but this assumption proved that it did not hold, causing traders to close their positions.

Data shows that Ethereum futures open contract fell from 8.82 million ETH to 8.52 million ETH on February 24, indicating that traders are closing their leveraged positions. Crypto Rover, a well-known cryptocurrency analyst, issued a warning on Twitter that if Ethereum continues to fall sharply, it may trigger market concerns about whether the copycat season can continue.

On-chain data shows that in the past 24 hours, the number of active Ethereum addresses has dropped by 7% to 450,000, and network activity may be declining. From a technical analysis, the ETH price has fallen below the 50-day moving average, showing bearish momentum. @Manofbitcoin analyzed on the X platform that ETH support is between US$2,512 and US$2,305. The upward trend is confirmed only when the continued breakthrough of $2,919.

In summary, Ethereum is currently facing great downward pressure and market sentiment tends to be cautious. The subsequent impact of leverage closing and Bybit events exacerbated price volatility. The potential decline in ETH prices may have a chain reaction to the altcoin market, and investors need to pay close attention to key support levels and changes in market sentiment.