Bitcoin Faces Unprecedented Pressure as the Cryptocurrency Market Continues to Experience a Steep Downtrend

The cryptocurrency market continues to experience a steep downtrend, marking its third consecutive day of losses. Bitcoin (BTCUSD), the market leader, has fallen approximately 12% over this period, crossing below a critical support level not breached in the last 50 days.

The cryptocurrency market is showing no signs of slowing down, and the bloodbath continues for a third consecutive day. Bitcoin (BTCUSD) is not having a good time at all. After falling apx 5% yesterday afternoon as analyzed in Bitcoin on ForexLive.com here, I noted the 50-day moving average in Bitcoin Futures is now at apx 91700, and now BTC futures have indeed slipped below the 50 Fib Ret around 91700, as discussed.

With Bitcoin futures now trading apx 90400-90500 on the Deribit exchange, this puts a spotlight on the next lower support zone of interest, which happens to be around $89,500-$90,000. This is also noted in the analysis on ForexLive.com, where we're looking at the directional bias of "bearish below $94190" for a potential juncture of interest for stabilization.

After hours of discussion on the matter, I'm now eyeing the $89,500-$90,000 range.

Cryptocurrency market bloodbath continues

Other major cryptocurrencies are also getting slammed in this sell-off, with several coins seeing double-digit losses:

Ethereum (ETHUSD) is trading at $3,176.30, down 4.52% in the last 24 hours and continuing its multi-day decline. Over the past three days, ETH has dropped more than 10%.

Dogecoin (DOGEUSD) saw one of the largest declines, falling 7.87% to $0.31526. DOGE has been underperforming amid a lack of positive catalysts.

Solana (SOLUSD) is another major loser, down 7.50% to $182.61. The sharp decline highlights the vulnerability of layer-1 protocols during broader market corrections.

Pepe (PEPEUSD) faced heavy selling pressure, dropping 6.19% to $0.000016725. Its recent performance reflects broader market uncertainty around meme coins.

Chainlink (LINKUSD) is trading at $19.27, down 5.72%. Despite recent partnerships and ecosystem growth, Chainlink has struggled to maintain upward momentum in this environment.

Cardano (ADAUSD) slipped 6.34% to $0.887, failing to hold critical support levels. ADA’s recent losses have erased its prior weekly gains.

XRP (XRPUSD) is down 4.90% to $2.2562, adding to its three-day decline. The asset’s inability to sustain above key levels has left traders concerned.

Notable Decliners and Relative Stability

While most cryptocurrencies faced severe declines, Binance Coin (BNBUSD) and Shiba Inu (SHIBUSD) showed slightly more resilience:

Binance Coin (BNBUSD) is down 2.86%, trading at $676.30. BNB has held up better than most major altcoins but is still facing selling pressure.

Shiba Inu (SHIBUSD) managed to limit its losses to 2.16%, trading at $0.00002083. Despite its meme coin nature, SHIB has outperformed many other altcoins in this sell-off.

Outlook for the Coming Days

Market participants are keeping a close eye on Bitcoin's price action around the $89,500-$90,000 range. If this support manages to hold, it could provide a crucial foundation for a potential recovery. However, a sustained break below this level may trigger further panic selling, dragging the market deeper into bearish territory.

For altcoins, their performance is largely expected to be influenced by Bitcoin's price movements. Investors are advised to exercise caution and consider partial profit-taking strategies during this volatile period. With no immediate major catalysts on the horizon, the market is likely to remain under pressure in the short term.

Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Trade at your own risk. Visit ForexLive.com for additional views.