Bearish Onslaught Forces Market Reassessment in Crypto

Amid a sudden market downturn, major cryptocurrencies like Bitcoin and Ethereum have experienced significant price drops. This bearish momentum has prompted analysts to reassess their predictions, with some signaling potential further declines and others remaining optimistic about a quick rebound.

Crypto Bearish Onslaught Prompts Market Reassessment

The cryptocurrency market has endured a turbulent downturn, with major digital assets experiencing significant price drops. Bitcoin (BTC), the market leader, has plummeted from its recent high of around $70,000 to $66,000, marking a sharp decline of approximately 5.71%. Ethereum (ETH), the second-largest cryptocurrency, has not been spared, witnessing a drop from $3,649 to around $3,300, a concerning 9.51% decrease.

This sudden bearish momentum has prompted analysts to reassess their predictions and cautiously speculate on the future trajectory of these digital assets. Last week, analysts were optimistic about Bitcoin's potential to break above overhead resistance and reach new all-time highs. However, the recent market reversal has forced a reevaluation of these forecasts.

Santiment, an established on-chain analytics platform, provided insights into BTC's drop to $66k, noting that many other altcoins followed a similar price trend. Despite this downturn, Santiment remains optimistic about a swift rebound, emphasizing that historically, the most opportune time to acquire a cryptocurrency is during a dip. This aligns with the popular "buy the dip" strategy among cryptocurrency investors, which involves purchasing assets when prices are low with the expectation of potential future gains.

"Bitcoin has seen a drop to $66.4K, and altcoins have shed much more of their market caps as prices have continued their concerning retracement to kick off April. However, the crowd is staying quite strong and showing confidence toward the prospects of a quick rebound," Santiment tweeted.

Another on-chain analyst, Ali, shared his perspective on BTC, highlighting that the TD Sequential indicator has generated a "sell" signal on Bitcoin's weekly chart, indicating a potential correction ahead. Ali anticipates a downturn lasting between one and four weekly candlesticks, suggesting that the bearish trend could persist for a few more weeks.

"The TD Sequential indicator presents a sell signal on the #Bitcoin weekly chart, anticipating a one to four weekly candlesticks correction!" Ali tweeted.

With some analysts anticipating further downturns, one could argue that it is a favorable time for investors to adopt the "buy the dip" strategy before prices embark on a potential rally.

Ethereum's Bearish Trend and Potential Targets

Turning to Ethereum's bearish performance, Ali commented that ETH's price trading below $3,460 is deemed problematic for bulls. He revealed that the coin lacks support at that zone, which further increases the likelihood of a correction towards $2,850 or lower. His analysis suggests that breaching $3,460 without robust buying could trigger a bearish spiral, with $2,800 as a potential downside target.

Echoing his previous analysis, he further emphasized that the most severe scenario for Ethereum is breaching the $3,400 support level. Such a move could confirm a bear pennant formation on the daily chart, potentially triggering a substantial 17% correction for ETH down to $2,800.

"In trading, you must always be prepared for the best and the worst!" Ali tweeted. "The most brutal scenario for #Ethereum right now is breaching the $3,400 support level. Such a move could confirm a bear pennant formation on the daily chart, potentially triggering a major correction for $ETH..."

Amid this bearish trend in the cryptocurrency market, both analysts and investors are closely monitoring the situation, striving to understand the potential implications and future paths for Bitcoin, Ethereum, and other altcoins. While optimism persists among some, with Santiment's claim echoing in the crypto community that there is a growing call for more "buying," others are preparing themselves for the possibility of prolonged bearish conditions.