Bitcoin, Ethereum Price Prediction – Here’s Why Market Leaders May Witness Deeper Correction

Bitcoin, Ethereum Price Prediction: The crypto market experiencing a sudden sell-off threatens to offset the recent recovery cycle in Bitcoin and Ethereum. Along with market leaders, the majority of altcoins fell lower and neared November bottoms. Thus, if the selling pressure, the downward spiral can continue and plunge the coin price below the last swing low support.

Top winners and losers

Source- Coin360

While the bearish cloud lurks over the crypto market, UNUS SED LEO and Toncoin are the only coins in green among the top 100 list. The LEO price is currently trading at $3.91 with intraday gains of 5.34%, while the TON price is trading at $2.46, registering a gain of 0.4%. On the other hand, Filecoin and Chainv tokens are the top losers, with FIL price at $3.03, down 21.86%, while XCN price of $0.02483 is down 18.67.

Why has the crypto market crashed recently?

The sudden selling pressure in the crypto market must have been heightened as market participants became concerned about the financial health of the world’s largest crypto exchange by volume, Binance. The concern arose when Binance presented its Proof-of-Reserves report in collaboration with Mazars Group, which many considered opaque. Furthermore, the news of Mazars Groups suspending ties with Binance and several other crypto exchanges is causing more panic in the market

While the crypto space has recently gone through the FTX crypto exchange crash, investors are quite wary of such events.

Also, hearsay that the US Federal Reserve will be aggressive in raising interest rates has led to more negativity in the market.

Bitcoin price

Source- Coinmarketcap

Bitcoin price witnessed an upswing from late November to mid-December. However, it appears that this price move was part of a bearish continuation pattern called an inverted flag.

Thus, with the latest price drop, the coin price made a massive breakout from the pattern’s support trendline. On December 16, the long breakdown candle supported by increasing volume indicated the seller’s confidence in further correction.

Source- Tradingview

Today, the BTC price is trading at the $16709 mark and is showing power struggles to surpass the horizontal level of $16825. Thus, if the price shows sustainability below the aforementioned $16825 or breaks the trendline, the Bitcoin price could fall 6.7% to return to $15600.

Ethereum price

Source- Coinmarketcap

Like Bitcoin, Ethereum price rose in response to a support trendline. However, on December 15, this altcoin broke the rising trend line, indicating that the market sentiment has changed from buying on the dip to selling on the rally.

With continued selling, ETH price plunged lower and pierced local support at $1,240 to $1,222. This broken horizontal level provides further resistance in favor of sellers to maintain the ongoing downfall.

Source trade view

At press time, the Ethereum price is trading at $1,180 with an intraday gain of 1.15%. The bullish candle supported by less volume indicates that the market participant is more interested in selling activity.

Thus, a possible retest phase could return to the $1180 mark to replenish the bearish momentum. Furthermore, a drop after the retest could lower the ETH price back to $1100-$1080.