The price of Bitcoin continues to fall for the ninth day in a row and is currently near a local low near $21,000. At the same time, trading volumes fell by 40% and amount to $42 billion. This suggests that yesterday there were no large liquidations and strong moves to important levels.
At the same time, Bitcoin dominance has been falling for the last 4 days. During this time, this indicator decreased from 48.5% to 45.5%. This may indicate the fact that many altcoins have already approached the peak of their decline. Let’s take a look at the chart of the largest altcoin, Ethereum, to understand what to expect from the market in the near future:
The Ethereum daily chart looks really bad. We see a non-recoil drop within 9 days. Moreover, on the daily timeframe, there is already the tenth week of falling in a row. It is obvious that the market evaluates the current state of the coin negatively and buyers are not ready to enter at current levels.
We have drawn a global downward channel in which Ethereum has been moving for the last 7 months. It can be noted that the chart moves very accurately within this pattern, from level to level. During May, ETH stayed near the middle line of the channel and is now heading towards its lower border, which is currently near the $750 mark.
Additionally, we stretched out the “Fibonacci extension” pattern. According to its, the price usually comes to the 1. This pattern has been formed since the end of last year and up to the present moment. Ethereum is currently hovering around the 0.9 mark. If we wait for the full development of this formation, then the chart has every chance to drop to $850.
The overall situation on the market looks catastrophic. Now there are absolutely no reversal patterns and good points for entering a long position. The market continues to clear and balance. Moreover, it is absolutely impossible to say in which direction the price will move not only for Bitcoin and Ethereum, but also for other altcoins. In the coming weeks, it is necessary to take a wait-and-see attitude.