This week the crypto market witnessed massive headwinds as investors liquidated enormous funds due to the ongoing uncertainty brought by the SEC’s crypto crackdown. Moreover, crypto companies are ditching Silvergate Bank like it’s going out of style after the bank issued a warning that it might not be able to keep operating. The warning was prompted by the bank’s losses from selling debt securities at a loss, leaving it undercapitalized. This resulted in a sharp price drop for Bitcoin and major altcoins like Ethereum and XRP.
Crypto Market To Extend Its Turmoil Next Week
Bitcoin, Ethereum, and XRP are trading lower today, causing the market to be partially red. However, some other major coins are experiencing a surge in value. It is anticipated that there will be a severe price plunge for BTC, ETH, and XRP in the next week.
Bitcoin Price Analysis
Bitcoin’s price is now tumbling near the $22K price level as it has formed a low near $21.9K. However, the asset quickly claimed the $22K level after gaining a slight amount of long positions.
On March 3, Bitcoin experienced a significant drop in price, going from $23,435 to $22,259 in just an hour. However, traders reacted 12 hours later when Bitcoin failed to rebound, according to experts at Santiment.
As of now, Bitcoin trades at $22.3K, with a minor downtrend in the last 24 hours. Looking at the 4-hour price chart, Bitcoin price may soon test its support below the 0.61 Fib level. After that, Bitcoin may extend its current bearish rally next week to the EMA-100 trend line at $21K; however, a bullish comeback is expected if it breaks the $23.5K barrier.
Ethereum Price Analysis
Investors are currently questioning whether the current bearish rally in the ETH price chart is a sign to join the bulls or if it is building up potential for a more downward rally in the upcoming days.
However, Ethereum has yet to display much volatility like Bitcoin as it consolidates in a range-bound zone. Ethereum has recently dropped below its monthly support level of $1,600 and took support near the EMA-200 trend line at $1,550.
As of writing, the ETH price trades at $1,564. Analyzing the daily price chart, Ethereum is preparing for another bottom, as it can trade near the $1.5K level next week if it breaks the $1,540 level.
XRP Price Analysis
XRP price is currently consolidating near the $0.37 level after plunging hard on Friday. As the summary judgment is still far, XRP will likely test the next support levels before validating a bullish rally.
XRP is currently trading at $0.376, with an uptrend of 2.5% from yesterday’s price.
If XRP fails to trade above $0.39 in the next 24 hours, it will face a potential downfall and can trade near the monthly support level of $0.33.