Bitcoin has come under selling pressure in recent days, and slips closer to 80k mark. Ethereum, with a even worse outlook, has been struggling at its lowest levels since late 2023.
The broader cryptocurrency market has been in decline since early February, mirroring weak risk sentiment in the US financial markets. While there was a brief revival earlier this month after US President Donald Trump announced plans to establish a “strategic reserve” for cryptos, that optimism quickly faded once details of the initiative were revealed.
The market’s disappointment stemmed from the fact that the reserve would be funded solely by those seized in criminal and civil forfeiture cases, with no actual government purchases planned. Many investors had initially hoped for a more aggressive accumulation strategy.
Technically, Bitcoin is still holding above 55 W EMA (now at 75052), which is slightly above 73812 cluster support (38.2% retracement of 15452. to 109571 at 73617). Price actions from 109571 high could still be seen as just forming a sideway consolidation pattern.
However, decisive break of 73k-75k support zone will argue that Bitcoin is already in a medium term downtrend, even still as correction. In the bearish case, Bitcoin could head to around 50k mark, that is, 49008 support and 61.8% retracement at 51405,before bottoming.
Outlook for Ethereum is even worse with focus now on 2000 psychological level, which is close to 2084.51 cluster support (61.8% retracement of 878.50 to 4108.15 at 2112.22).
Sustained break of this support zone around 2000 will raise the chance that fall from 4108.15 is the third leg of the decline from 4863.75 (2021 high). That could set up deeper medium term fall through 878.50 (2022 low).
