Bitcoin price failed to keep gains and extended its decline below the USD 40,000 support. BTC broke the USD 38,000 support level and it even spiked towards USD 36,000. It is currently (12:30 PM UTC) recovering above USD 38,000 again, but upsides might be limited above USD 40,000.
Similarly, most major altcoins declined heavily. ETH declined over 20% and it even spiked below USD 2,500. XRP/USD also followed a similar pattern and it declined towards USD 1.10.
Meanwhile, in the past 24 hours, almost USD 4bn worth of trading positions (492,175 it total) in the crypto derivatives market were liquidated. USD 1.4bn of these are BTC trading positions, per Bybt.com data.
Total market capitalization
In the past two sessions, bitcoin price saw a strong decline below the USD 42,000 and USD 40,000 support levels. BTC even broke the USD 38,000 support and it traded close to USD 36,200. If the price continues to decline, it could test the USD 35,000 support zone in the coming sessions.
On the upside, an initial resistance is near the 39,500 level. The first major resistance is near USD 40,000, followed by USD 42,000.
Ethereum price tumbled below the USD 3,000 support zone. ETH even broke the USD 2,800 support and it spiked below USD 2,500. A low has formed near USD 2,450 and the price is now recovering higher. An immediate resistance is near the USD 2,800 level. The main resistance is now forming near the USD 3,000 level (the last key support zone).
If there is no recovery above USD 2,800, the price could continue to move down. The main support on the downside is near the USD 2,500 zone.
BNB, LTC, DOGE, and XRP price
Binance Coin (BNB) is also down over 20% and it dived below the USD 450 and USD 400 support levels. BNB spiked towards the USD 365 level and it might struggle to recover above USD 420. The main breakout zone is now forming near the USD 450 level.
Litecoin (LTC) trimmed most of its gains and it declined below the USD 250 support. It even traded close to the USD 220 support zone. The price is now recovering higher, but the bulls might face selling interest near the USD 265 and USD 280 levels.
Dogecoin (DOGE) is down over 25% and it broke the USD 0.400 support zone. DOGE even tested the USD 0.332 support zone. If there are more downsides, the bears might aim for a test of the USD 0.300 support zone in the near term.
XRP price declined over USD 0.30 and it broke the USD 1.25 support zone. XRP even tested the USD 1.10 level. If the current trend remains intact, there are chances of a drop towards the USD 1.00 support zone in the near term. On the upside, the bears might remain active near USD 1.35.
Other altcoins market today
Many altcoins declined over 25%, including TEL, SHIB, REV, NEXO, CAKE, ICP, VET, NANO, MIOTA, SC, UNI, ICX, HOT, ETC, DGB, and EOS. Out of these, TEL and SHIB dived over 35%.
To sum up, bitcoin failed to stay above the key USD 40,000 support zone. If BTC settles below USD 40,000, it could open the doors for a medium-term downtrend.
Learn more: Another Usual Bitcoin Crash: Bear to Run Short-Term, Bull to Follow It