Overnight sell-off pushed Bitcoin to lows of $11,150 as altcoins post similar losses.
A miserable Wednesday for crypto saw widespread losses across the market as Bitcoin printed a $1,000 candle down and a bearish pattern tanked alts, some in double-digit losses.
Although Bitcoin’s price has hit highs of $11,400 in the past few hours, the bearish outlook looms over the wider market, and coins could post more losses to hit new lows.
Bitcoin price dropped from a high of $11,955 to lows of $11,150 as bears reveled in crypto’s bad day yesterday.
After taking out the 20-day EMA at $11,552, bears are strengthening and have aggressively defended the area around $11,400 during the Asian trading session.
If they succeed in taking out the $11k zone, a bearish breakout could see BTC/USD validate a head and shoulders pattern. The danger for bulls at this level is that prices could fall steeply to lows of $9,500.
According to pseudonymous Bitcoin trader George1Trader, its likely sustained pressure could see BTC/USD dip to lows of $9,000. The investor points to the massive hurdle in front of Bitcoin bulls if they fail to hit a close above today’s open.
If lower is the easiest route, then the next target would be last month’s lows.
As of writing, the BTC/USD pair is trying to hold onto prices above $11,300 to avoid a retest of $11k, a scenario that effectively gives sellers the upper hand.
Conversely, a rebound above major resistance at $11,600 would see bulls retake the initiative. BTC/USD would likely enter another consolidation phase around the $11,300-$11,800 range before a re-launching another attempt at $12k.
ETH/USD and XRP/USD
Ethereum and XRP have also registered huge declines over the past day and could sink to new lows if bulls fail at overhead resistance areas around $450 and $0.295 respectively.
Ether traded as high as $490 on September 1 as bulls eyed a new multi-year high. Yesterday’s rocky ride saw it drop nearly 10% to lows of $420. Buyers need to confront seller congestion at $450 to retain an interest in the psychological $500.
As of writing, ETH/USD is trading around $427. If sellers take out the 20-day EMA at $412, declines to lows of $370 are possible.
For XRP/USD, the critical area to watch is $0.263 (50 SMA) as a break below could see a pullback to lows of $0.23. XRP is trading around $0.269 as of writing.