Crypto Crash: Bitcoin and Ethereum Plunge as Market Downtrend Intensifies

Amidst a market downturn, Bitcoin and Ethereum prices plunged significantly on Tuesday. Bitcoin fell below $61,000, fueled by a failed breakout attempt. Ethereum witnessed a drop of 6.25%, reaching $3,015. Altcoin investors joined the sell-off, exacerbating the decline.

Bitcoin and Ethereum Plunge as Crypto Market Downtrend Intensifies

Hong Kong - The crypto market witnessed a significant downturn on Tuesday, as leading digital assets Bitcoin (BTC) and Ethereum (ETH) experienced substantial price declines.

Bitcoin Slides Below $61,000

Bitcoin's downward trajectory continued unabated on Tuesday, with the price plummeting below the $61,000 mark. The plunge extended Bitcoin's ongoing downtrend, which began after a failed breakout attempt beyond $67,200.

As of press time, Bitcoin was trading at $61,226 on major cryptocurrency exchanges. The asset had briefly found some support at an intraday low of $60,737, but this level proved insufficient to stem the downward momentum.

Ethereum Breaks Below $3,000

Ethereum, the native asset of the Ethereum blockchain, also suffered significant losses on Tuesday. The coin's price dropped by 6.25%, reaching $3,015 at press time. This decline marked Ethereum's fall below the critical $3,000 level, signaling a bearish outlook.

Altcoins Capitulate

The slump in Bitcoin and Ethereum triggered a sell-off in altcoins, with investors liquidating their positions in these smaller digital assets. The overall cryptocurrency market capitalization experienced a notable decline as a result.

Hong Kong Welcomes Spot Bitcoin and Ethereum ETFs

Amidst the market downturn, Hong Kong made a significant stride in crypto adoption. The city debuted the first spot Bitcoin and Ethereum exchange-traded funds (ETFs) on Tuesday. The ETFs, issued by leading Chinese asset manager China AMC, attracted strong interest, with total assets under management reaching $141 million.

Bitcoin Price Outlook

Technical analysis of Bitcoin's 4-hour timeframe suggests that the asset could be heading toward a retest of the monthly lows around $59,600. A breakdown below this level could have dire consequences for the entire crypto market.

However, bullish divergences on key technical indicators such as the relative strength index (RSI) and money flow index (MFI) indicate the potential for a brief bounce from current levels. Nonetheless, a breakdown below the $60,000 support will shift the Bitcoin price prediction to bearish on the daily timeframe.

Ethereum Price Prediction

Ethereum's 4-hour candle closure below $3,066 on Tuesday has painted a bearish outlook for the coin. This could lead to a further retest of the $2,852 level, followed by a potential pullback below $2,687. However, the presence of a significant demand zone around $2,687 could provide some support.

Conclusion

The ongoing downtrend in the crypto market has intensified, with Bitcoin and Ethereum experiencing significant price declines. The launch of spot Bitcoin and Ethereum ETFs in Hong Kong is a positive development for the industry, but it remains to be seen whether this will provide any respite from the current market volatility. Investors are advised to exercise caution and manage their risk exposure accordingly.