Bitcoin price today hit a deeper low, dropping to $63,379. The recovery in altcoins also halted. The sell-offs in BTC are discouraging for investors, and testing deeper support levels in altcoins creates interesting scenarios. Some altcoins have dropped to levels seen when BTC was at $40,000.
Current State of Cryptocurrencies
BTC is trading at $64,150, and continued closures at lower levels negatively affect risk appetite. The German government’s liquidation of its billion-dollar BTC reserve has impacted the market more than expected in terms of FUD. The concern is the potential for the US and others to send their holdings to exchanges for sale.
If BTC cannot reclaim $64,700, the sell-offs might continue down to $61,200. This will not bode well for altcoins. In case of deepening sell-offs, further losses between $60,000 and $58,000 are possible.
The total market value of cryptocurrencies has dropped to $2.34 trillion. The volume is at $68 billion, which is not a good level compared to the week. The Fear and Greed Index is at a neutral level of 52. BTC lost 4% weekly, while ETH increased by 0.8% in the same period. This seems related to the soon-to-be-approved S-1 Forms.
AVAX, LINK, and DOGE
AVAX was warned to have severe consequences if it closed below $31.5. When the price was still at $38 and above, it was predicted that such a drop could trigger tests in the $27-24 range. This happened, and AVAX price rebounded from $25. Unless $31.5 is reclaimed, the risk of excessive selling could continue down to $15.8.
LINK Coin, although a favorite altcoin, continued to decline after making a lower peak at $19. Currently, the price has rebounded from $14, and if it can reclaim $15.7, it might move away from the parallel channel bottom support at $12.
DOGE attempted to reclaim $0.153 but failed. The target scenario was a drop to $0.11, and the lower wick approached this. Currently, if $0.128 can be reclaimed, the sell-offs in DOGE might slow down.
In a bearish scenario, the targets for excessive sell-offs are $0.094 and $0.083 below $0.11.
