How Low Can Altcoins and Bitcoin Crash Go?
Crypto traders with the necessary information made smart decisions to exit the market before the August and September bears. As the crypto market is expected to rebound soon, the critical question of how far the price will fall continues to linger in most traders' minds.
Moreover, the price of Bitcoin has not shown any signs of bullishness in several time frames. As a result, the Bitcoin Fear and Greed Index dropped below 25%, indicating fears of further capital raising.
The main crypto targets to watch in the future
Bitcoin (BTC)
Continued low interest in Bitcoin among institutional investors has weighed heavily on medium-term bullishness, as seen in the outflows from spot BTC ETFs over the past two weeks.
From a technical perspective, Bitcoin price is currently testing the lower boundary of the falling correction channel that started in March. If Bitcoin price closes below $54 this week and further teases below this support level, further correction to the support level between $46k and $50k is highly likely.
Ethereum (ETH)
The price of Ethereum has been depressed over the past five months, but has rallied since the approval of more positions for Ether ETFs in the United States. As a large-cap altcoin, with a fully leveraged value of nearly $277 billion and an average daily trading volume of around $27 billion, bitcoin's price could fall further if it fails to regain bullish sentiment in the near term.
From a technical point of view, ETH price is currently testing a critical support level against the US dollar, which it could bounce back soon. However, a consistent close below the established growth trend could result in further weakness in the near term.
Altseason timeline
Although Bitcoin's dominance has increased over the past two years, the increasing circulation of crypto cash signals the start of the much-awaited altseason for altcoins.
However, with the positive correlation between altcoins and Bitcoin, it is highly likely that most of the alts will continue to bleed into Bitcoin if bearish sentiment picks up.
