BTC and ETH lose key support and possible further correction

Key factors

• Total crypto market cap has lost $ 500 billion since November.
• Bitcoin and Ethereum have both fallen more than 15% since then.
• Both assets could take further losses as they lose the important area of ​​support.

The fact that Bitcoin and Ethereum hit new all-time highs on November 10th has sparked profit-taking among traders. The recent surge in selling pressure has seen the top two cryptocurrencies fall more than 15% since then, with much of the losses occurring in the past 24 hours.

Bitcoin can continue to fall

It looks like Bitcoin and Ethereum are in a correction phase.

The crypto market continues to bleed as more than $ 500 billion has been wiped away from total market cap since last week.

The correction has significantly dampened the bullish sentiment among market participants. Bitcoin recently lost a major level of support and could face a bigger decline. The benchmark cryptocurrency broke below the center line of a parallel channel that has existed since July 20 at $ 63,000.

Since then, every time it has seen similar price movements, Bitcoin has found support in the lower line of the channel, which is currently at $ 54,000.

Daily BTC / USD Price Chart | Source: TradingView

To avoid further losses, Bitcoin must reclaim USD 63,000 as support and print a daily close above USD 65,000. If so, BTC can muster strength and get closer to its next target of $ 75,000.

Ethereum must hold over $ 4,000

Ethereum has also hit an important area of ​​support after a sharp drop last week.

It hit a low of $ 4,100 and rebounded above $ 4,300. However, given the strong selling pressure at higher levels, ETH has fallen behind and appears poised to hit another low around $ 4,000.

Professional traders may see the drop to $ 4,000 as an opportunity to get back into the market. A potential retracement would be retesting the breakout from the cup in the hand. If that support can hold, Ethereum can rebound towards the pattern target of $ 6,300.

Daily ETH / USD Price Chart | Source: TradingView

It’s worth noting that many on-chain metrics show that the crypto market is going through an accumulation phase. Because of this, there is a possibility that Bitcoin and Ethereum could recover from their main support levels.

If their main price zones are broken, Bitcoin could fall to $ 51,000 or $ 46,000 and Ethereum to $ 3,000.

You can see the BTC and ETH price Here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to crypto briefing

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