After trying to sustain a stable outlook around $47,000 - $48,000, Bitcoin’s price collapsed to $43,500, breaking even the previous support level around $44,000.
The support level at $44,000 remained the main entry point for the prospect bullish break to levels higher than $50,000.
After breaking this point, a return in the bullish zone might need a solid approach that could take too long for a potential recovery.
The next step for the Bitcoin price will be a recovery towards the $47,000, shaping the path for the $50,000.
On the other hand, a return below the $40,000 would mean that the bearish investors will bring more pressure on the market.
The next days will remain crucial as the investors will reveal any prospects for the price and how long the price will remain on those levels.
The expectations will be shaped better as the price will approach the $40,000 point.
More and more investors will consider Bitcoin as a considerable choice in terms of pricing.
As we start this correction, we should wait for the next moves to have a better overview of the situation.
The trading volumes remained on the same spot, showing that the market is not rushing down while the moving averages are positioned in bearish formation, bringing less brightness in the market for now.
The short-term diagram shows that the $44,000 support level was tested during the previous week, making the market more fragile than before.
In the technical analysis, it is commonly known that whenever a support or resistance level is tested, it is more likely to break in the next period.
MACD index never managed to come back in the positive area, and the momentum has been decreasing over the last period, a fact presented in the price formation.
The RSI index moved to value = 40, which is the first point when the market might enter a bearish market in the next term.
Ethereum also had a negative turn today as the price moved down to $3,050, holding on to the crucial point around $3,000.
The first counterpoint for the Ethereum market will be to retest the $3,300 and examine an overall strategy for returning on the positive side.
On the opposite side, a break in the $3,000 support level would increase the possibilities for an acceleration in the bearish trend.
This acceleration could be harmful to other tokens also, as many altcoins are based on the Ethereum blockchain to exist.
This fundamental threat could bring the market to an edgy point.
This situation will worsen if more coins try to follow Ethereum as the market leader instead of Bitcoin, which will change the dynamics in the crypto market.
The trading volumes didn’t show any difference from the last period, while the moving averages remained on bearish formation for now.
MACD index plunged to the negative area, bringing more negative momentum in the market, while the RSI index dropped to value = 40, which means that the price will probably drop in the next few days.
A crucial support level also broke in the Ripple market as the price dropped to $0.91, breaking the major support level at $1.00.
The $1.00 was critical for the Ripple market as it was the benchmark for many investors regarding the next moves of the market.
Any indicator that the price will remain above the $1.00 sparked positive reactions, while the opposite situation might bring an accelerated outcome for a bearish situation.
From this point and below, there is no clear support level that could turn the market around.
This could change from the market dynamics and how Bitcoin will affect the price structure in this market.
The trading volumes made a tiny spike today while the moving averages are heading in the negative direction.
MACD index remained in the negative area, despite the trials from the previous days to go the other way around.
The RSI index moved to value = 35, a negative signal for the price development.
Litecoin’s price plunged to $155, creating a potential “Head and Shoulders” formation in the chart, meaning that the market will try to have another shot for a positive outcome.
The resistance level at $200 broke last week in the Walmart hype and never returned above it.
The most crucial level will be established around that, waiting for the market to track it.
Otherwise, the price will remain on the same levels as before, without any surprises.
The trading volumes remained at higher levels than before while the moving averages were in bearish formation.
MACD index remained negative, and the RSI index moved below value = 40, indicating that the market could see another bearish trend in the next period.
The drop in the Bitcoin Cash market was not so severe as the coin had already experienced a few negative moves in the recent past.
The price fell below $550, while the next support levels lay around $400.
The $550 price level was tested several times and acted both as a support or resistance level.
This means that the market relies on the next level to establish the next trend in it.
The trading volumes are making a small spike now and then while the moving averages are on the bearish side once again.
MACD index remains negative while the RSI index moved to value = 35, a negative signal for the market formation process.
Another drop became evident in the Dogecoin market as the price reached almost $0.20.
As we can see from the charts below, the average price for Dogecoin during the last year was around $0.07.
Its price can return to those levels if investors take a break off or lack capital to enter the market.
From a technical point of view, the support level at $0.18 has been an informal level that could bring another pass on the positive side.
But always remember that Dogecoin is always moving with market dynamics and the vibes.
The trading volumes have no difference from before, while the moving averages are more distant than before.
MACD index remained in the same negative area while the RSI index touched the value = 30, indicating that the bearish market might end in a few days.
Cardano dropped down to $2.04, a level that has been familiar in the Cardano market as it was the local peak point at mid-May.
It also moved around $2.00 in early August. Seeing that, we expect that the market could shape the next trend from a technical point of view.
The trading volumes have been ascending as more and more investors are getting active in the Cardano market.
This sign of maturity in the market could bring the market to the next step while the moving averages have entered more in the negative zone.
MACD index is moving big in the negative zone, creating more negative momentum, while the RSI index has moved around value = 35, indicating that another drop is possible for now.
Bitcoin / Ethereum = 0.93 (+ 0.23), Bitcoin / Ripple = 0.91 (- 0.02), Bitcoin / Litecoin = 0.88 (+ 0.14), Bitcoin / Bitcoin Cash = 0.87 (+ 0.06), Bitcoin / Dogecoin = 0.88 (- 0.08), Bitcoin / Cardano = 0.76 (- 0.07)
The sudden drop in the entire market brought the correlation field in the same direction, without excepting any cryptocurrency from that.
The major surprise was made in the Ethereum market as the coin was trying to establish a separate market formation and get more independence.
The major negative force from the Bitcoin correction was enough to affect every altcoin, hitting high levels of correlation at Ripple, Litecoin, Bitcoin Cash, and Dogecoin.
The only exception has been Cardano, whose price formation remains slightly different for now but in the same mood.
