Bitcoin, Ethereum, XRP Face Crucial Test After Sharp Sell-Off

Bitcoin experienced a significant downturn, falling to $65,420.59, a 4.8% drop in the last 24 hours and a 13.6% decline over the past week, according to CoinGecko data. Ether and XRP saw even steeper losses, with key support levels for traders giving way sequentially.

Ether plummeted 5.7% to $1,826, marking an 18.2% weekly decrease. XRP fell 6.1% to $0.9573, pushing the token back below the $1 mark. Solana suffered the most among the major cryptocurrencies, sliding 8.6% to $72.66.

Bitcoin Slices Through the $67,000 Target Zone

Gareth Soloway, chief market strategist at Verified Investing, had previously cautioned that a breach below $75,500 would pave the way for a decline to the $66,000-$67,000 range. Bitcoin initially found resistance near $67,500, but has since broken through this entire zone and is now trading approximately $1,500 below its lower bound. The current selling pressure has rendered several previously significant chart levels irrelevant.

The Bull Case Is Now Under Pressure

Soloway indicated he had begun accumulating small positions in Bitcoin around the $67,000 level, alongside some Solana. He had argued that a recent higher high on the charts suggested a short-term bottom was forming. Under this interpretation, the current decline would be viewed as a pullback within a broader recovery, rather than the start of a new downtrend.

This bullish outlook hinges on a critical threshold. If Bitcoin establishes a lower low below its previous cycle low, the existing higher-low structure would be invalidated, signaling that the cycle bottom has not yet been established. With the price now trading below the target zone, the market is approaching a test of this crucial level.

Ethereum Falls Through Its Buy Zone

Ether has now slipped below the trend line it had previously surpassed. It is currently trading below the price area where buyers were anticipated to re-enter the market.

Soloway stated he had initiated a long position in Ether at an average price of $1,952, representing about a quarter of a full position, and had planned to add more near $1,850. At its current price of $1,826, Ether is trading below both of these levels. The market capitalization of Ether has consequently fallen to approximately $223 billion.

XRP Loses $1 Again

XRP had initially dipped below $1 earlier in the week before recovering to $1.02. This rebound has since faltered. At $0.9573, the token is now trading below its August low of roughly 98.5 cents and has declined 16.9% for the week.

On the four-hour chart, the relative strength index (RSI) had been trending upward from its lows even as the price declined. This divergence can sometimes indicate waning selling pressure, but it has not yet resulted in a sustained recovery.

Altcoins Bleed Harder

The recent sell-off has impacted larger altcoins more severely than Bitcoin over the past week.