The price of Bitcoin (BTC) has abruptly dropped by 17.65% after failing to hold support near the $55,000 and $52,000 level. The leading cryptocurrency is now struggling to settle above $50,000. A daily close below $50,000 might indicate a possibility for a further decline to $45,000. The sudden price drop of the flagship cryptocurrency resulted in the entire crypto market falling downwards.
Bitcoin Price Drop Triggered Bearish Momentum in the Crypto Market
The sudden price drop of Bitcoin (BTC) resulted in strong bearish momentum for most of the top altcoins. For instance, Ethereum (ETH) has been down by over 15% and is struggling to stay above $1,600. The next major support is near the $1,550 level, below which the price might revisit the $1,450 support. On the upside, the $1,720 level is short-term resistance. Bullish investors need to gain strength above the $1,750 pivot level in the near term.
Meanwhile, Binance Coin (BNB) has broken the $250 support zone. The altcoin seems to be falling downwards and approaching support at the $225 level. Bullish investors might find next major support at $200. However, its price seems to be failing hurdles near $275 and $280.
Similarly, Litecoin (LTC) seems to be gaining momentum below $220 and $200 support levels. The altcoin is currently testing the $185 support level. However, its price could continue to move down towards the $175 level. Meanwhile, the previous support at the $200 level might act as a resistance in the near term.
Altcoins and DeFi tokens Declined by Over 10%
On the flip side, the XRP token is stable near the $0.525 support zone. There were no sharp declines like other altcoins, but there could be a risk of dropping below the $0.512 and $0.505 support levels. On the upside, the token might face hurdles near the $0.540 and $0.550 levels.
Following Bitcoin’s strong dip most of the altcoins have declined by over 10%, including BTT, DODO, EGLD, GRT, WAVES, ONT, 1INCH, SC, CRV, OCEAN, DGB, UMA, AAVE, ICX, IOST, OMG, ALGO, BSV, ETC, ZIL, and BAT. On the other hand, the CRO token is trading above $0.175, with gains of over 29%.