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$3K Bitcoin Price Drop: What Level It Must Hold to Stay Bullish

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Bitcoin’s price has lost its momentum and has retraced by several grand in the past day or so, but it’s still above a key support level.

Ali Martinez, the popular crypto analyst with almost 120,000 followers on X, noted that the bull run is still intact as long as the cryptocurrency remains above $98,000.

The primary cryptocurrency experienced massive volatility at the start of the week, as it plunged by over $6,000 on Monday morning to under $100,000 before it exploded out of the gate to a new all-time high above $109,000.

This all transpired ahead of Donald Trump’s inauguration, and when that arrived, BTC slumped, as he had failed to mention the industry even once. Nevertheless, the $100,000 support held and bitcoin bounced off toward $107,000.

However, the bears stopped the asset’s ascent at that point and pushed it south by a few grand in the past day. Just a few hours ago, the cryptocurrency tested $104,000 but has remained above it.

Despite this $3,000 price drop in a day, BTC’s bull run will continue as long as it remains above $98,000, said Martinez. He outlined that level as particularly important for the asset due to the massive accumulation point it has become.

More than 101,000 BTC (valued at $10.5B at today’s prices) were purchased at around that line, which turned it into a ‘crucial’ support. Typically, investors, especially those who have arrived at the scene more recently, tend to dispose of their holdings if they see the price tumble below their entry level.

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Cryptocurrency

Ethereum Struggles to Impress in Bull Cycle, But a Breakout May Be Imminent

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Despite being the second-largest cryptocurrency by market cap, Ethereum (ETH) has fallen short of expectations during this bull cycle. Unlike Bitcoin and its rival altcoins, which have achieved impressive gains and reached fresh highs, ETH has been unable to reclaim its 2021 peak.

However, a much-anticipated bullish reversal could soon change this narrative.

New ATH For Ethereum

According to the latest analysis by CryptoQuant, there has been a notable rise in Ethereum’s open interest (OI), which hinted at a potential breakout as well as a possible bullish rally. The open interest metric, which tracks active futures contracts across exchanges, has climbed steadily and reached record levels. This surge is indicative of heightened trader activity, with a significant increase in long positions being opened.

However, it is important to note that Ethereum’s price has not yet mirrored this uptick in futures activity, creating a divergence between market expectations and actual price movements. As per the on-chain analytic platform’s data, this imbalance indicates mounting pressure in the market.

To top that, the elevated open interest also raises the probability of liquidation cascades, which could trigger abrupt and substantial price swings.

While the precise direction of the breakout remains uncertain, prevailing sentiment leans bullish. If Ethereum overcomes key resistance levels, it may ignite a sustained rally, potentially setting a new trend in the market.

Breakout Could Push ETH to $20K: Analyst

Ethereum’s underperformance compared to other top altcoins sparked frustration among its community. Additionally, criticism of co-founder Vitalik Buterin’s periodic ETH sales, centralization concerns tied to major holders, and regulatory compliance issues have fueled doubts about Ethereum’s future trajectory.

Despite these challenges, Santiment observed that this negativity could create a rally opportunity, as markets often move opposite to sentiment.

This aligns with CryptoPotato’s recent report, which also signaled that Ethereum may be gearing up for a significant comeback, with analysts predicting potential price targets of $4,000 to $20,000 if it breaks critical resistance at $3,550. The crypto asset saw a 4% surge in the past 24 hours, trading a little over $3,400.

This uptrend was fueled by a broader crypto market rally and increased holdings by Trump-associated World Liberty Financial, which recently added 3,079 ETH to its portfolio. Optimism also stemmed from President Trump’s executive order to explore a “National Digital Asset Stockpile,” potentially boosting crypto adoption.

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Ethereum Price Analysis: ETH Prepares for a Big Move – Up or Down?

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Ethereum is on the verge of breaking out of a decisive price range, introducing heightened volatility and indecision to the market.

A bullish breakout would likely trigger a rally toward the $4K resistance, while a bearish move could trigger significant downside momentum.

Technical Analysis

By Shayan

The Daily Chart

ETH’s price action reflects a phase of heightened volatility followed by a period of sideways consolidation. The cryptocurrency is currently trapped within a narrow range, defined by the 100-day moving average at $3.2K and the critical $3.5K resistance zone.

This price range is significant, as it holds substantial liquidity that could fuel a sharp move in either direction upon a breakout. A break above the $3.5K mark would likely initiate a bullish rally toward the $4K threshold, reinforcing positive market sentiment. Conversely, a bearish breakdown below the 100-day MA could result in a cascade of sell orders, potentially driving the price down toward the $3K support level.

The upcoming price action within this range is pivotal for shaping Ethereum’s mid-term trend, with both buyers and sellers prepared for heightened market activity.

The 4-Hour Chart

On the lower timeframe, Ethereum’s tight trading range reflects a fierce struggle between bulls and bears. The price is bounded by the 0.5 Fibonacci retracement level at $3.2K and the descending wedge’s upper boundary near $3.3K, resulting in volatile sideways movement.

Ethereum buyers are showing determination, aiming to push the price above this dynamic resistance. If successful, this breakout could drive the asset toward the $3.5K threshold, where further upside momentum could be tested. However, should sellers regain control, a breakdown below the 0.5 Fibonacci level would likely lead to a bearish cascade, targeting lower support levels.

Given the market’s current state, a bullish breakout above the descending wedge and a subsequent rally toward the $3.5K resistance is the more probable scenario in the short term. This move could signal renewed optimism and set the stage for further gains in the market.

Onchain Analysis

By Shayan

During the recent consolidation stage, two significant liquidity pools have emerged, one below the $3.2K mark and the other above the $3.5K threshold. These zones represent the liquidation levels for short and long positions, respectively, and are highly attractive targets for bears and bulls. The clustering of liquidity at these levels underscores the heightened tension between supply and demand forces in the market.

This setup makes both the $3.2K support and $3.5K resistance critical levels to watch as the market appears poised for a decisive move. The concentration of liquidity at these thresholds increases the likelihood of a breakout toward either direction in the near term.

Given the current market conditions and the visible bullish momentum, a breakout above the $3.5K mark seems more probable in the short-to-mid term. Such a move would likely aim to capture liquidity above this threshold, paving the way for a sustained rally toward higher resistance levels.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Cryptocurrency

Ripple Price Analysis: Is XRP Set to Break Out as Consolidation Wraps Up?

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Ripple has reclaimed significant resistance levels, surging above the $3 psychological threshold.

While the price exhibits strong bullish momentum, mixed signals in market indicators suggest a potential corrective phase may precede further upward movement.

XRP Analysis

By Shayan

The Daily Chart

XRP has demonstrated impressive bullish momentum in recent months, breaking above key resistance zones, including its prior major swing high of $2.8 and the psychological $3 mark. This breakout highlights the dominance of buyers in the market, suggesting a robust bullish sentiment.

However, upon reaching the $3.4 price level, the bullish momentum encountered selling pressure, leading to a period of consolidation. The RSI indicator shows a bearish divergence alongside an overbought state, which implies a potential corrective phase could emerge soon.

Despite this, the price action remains within an ascending wedge pattern, suggesting that a continuation of upward consolidation is plausible in the mid-term, provided buyers maintain control.

The 4-Hour Chart

On the 4-hour chart, XRP’s breakout above $2.8 triggered a wave of short liquidations, driving the price toward the $3.4 region. This zone now acts as a significant resistance area characterized by heightened supply levels.

While temporary rejection and consolidation are likely at this resistance, Ripple’s strong bullish momentum hints at a potential breakout above the $3.4 mark in broader prospects. Such a move would pave the way for a new all-time high.

In the short term, heightened volatility should be expected, with potential corrections pulling the price back toward the 0.5-0.618 Fibonacci retracement levels. This range could provide a strong support zone, allowing Ripple to gather momentum for another rally.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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