Volatile Crypto Market Ends Week with Bearish Sentiment, Potential for Rebound

Amidst market volatility and bearish trend, the crypto market cap stands at $2.51 trillion. Bitcoin, Ethereum, and XRP prices are seeing downturns, with Bitcoin failing to hold gains and ETH and XRP showing sideways movements. Despite an upcoming Bitcoin halving, buyers struggle to maintain control as selling pressure increases.

Volatile Crypto Market Ends Week with Bearish Sentiment

Amidst the rollercoaster ride that has characterized the cryptocurrency market this week, the total market capitalization currently stands at $2.51 trillion. This high volatility has culminated in a bearish market closure, with selling pressure surging over the past 24 hours, reaching a volume of $115 billion.

The bearish sentiment has cast a shadow over the leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and XRP, whose prices have been on a downward trajectory. Despite the upcoming halving event for Bitcoin next month, buyers have found it challenging to maintain control.

Bitcoin Price Analysis

Bitcoin's price has taken a dip since buyers failed to maintain momentum above the $73,000 mark. The decline resulted in two declining trendlines forming an expanding channel, with the price plummeting to a low of $60,760.

However, the 4-hour chart indicates bullish dominance at $62,000, creating a demand zone. This zone has provided support for Bitcoin, leading to a double-bottom reversal.

According to Fibonacci retracement levels, Bitcoin's price is currently poised at the 50% level and the 200 EMA. This suggests that sideline traders anticipate a potential reversal.

Presently, Bitcoin trades at $64,180, registering an intraday growth of 0.62% and forming a Doji candle. Among the three cryptocurrencies analyzed, BTC price appears to be poised for a bullish rally. With the breakout of the overhead trendline, the next week could witness a bounce back to the $73,000 peak.

Ethereum Bulls Seek Recovery

Ethereum, the second-largest cryptocurrency by market capitalization, is also facing a downward trend similar to Bitcoin and XRP. The ETH price has declined approximately 17% over the past two weeks, retreating from $4,000. Currently trading at $3,345, the altcoin displays a modest intraday movement of 0.25%, forming a Doji candle.

The Fibonacci retracement levels on Ethereum's 4-hour chart indicate that the price trend has fallen below the 200 EMA. However, the bullish divergence in the RSI indicator suggests a high probability of a reversal.

If the bull run resumes next week, ETH's price could surge above $3,600. Subsequently, the altcoin has the potential to reach $4,050.

XRP Price Remains Choppy

Amidst the broader market correction, XRP's price has remained stagnant. While other altcoins have set new all-time highs, XRP's price movement has been volatile, oscillating sideways.

The Ripple price trend, fluctuating near the 200-day and 50-day EMA after a recent golden crossover, is confined between the 38.20% and 50% Fibonacci levels.

If XRP price finds support at the 50-day EMA and the 38.20% Fib level, a reversal rally could propel the price to $0.68.

Market Outlook and Potential Drivers

Despite the correction this week, the overall market is expected to recover in the coming week. However, the bull run could be temporarily halted as global events, such as the recent terrorist attack in Russia, heat up.

If buyers halt the downward momentum, the market could witness a surge in the prices of Bitcoin, Ethereum, and XRP.