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After a strong rebound, Bitcoin price is once again trading lower. On Tuesday, Ethereum price also dipped below $3,000, hitting the fresh weekly low of $2,986. This triggered a bearish sentiment in the altcoin market which was showing a great recovery from the weekend's drop.
Another leading crypto asset Solana (SOL) is also facing a major slump. The smart contract cryptocurrency is currently trading at $137.4, which is almost a 35% price decline from the yearly peak of $211. In the last few days, SOL crypto has shown a significant recovery from its monthly low of $119 but the short term outlook remains bearish.
From the perspective of technical analysis, BTC/USD appears to be facing a local downtrend after failing to find strength above the psychologically significant $70,000 level. Currently, Bitcoin price is down 14.2% from its all-time high but the BTC dominance remains resilient. However, the intensity of the recent sell-off suggests that another bearish leg is quite likely.
For the moment, the support around $60,300 level is holding up but a breakdown below this level will break the bullish structure on the daily timeframe.
As Ethereum has a strong correlation to Bitcoin, ETH fell below $3,000 as BTC dipped on Tuesday morning. However, the buyers stepped in around $2,980, pushing the price above key psychological level once again. At press time, the biggest smart contract digital asset is trading at 3,059.
From technical standpoint, ETH/USD is recovering after hitting a demand zone as shown in the chart below. If the sellers overpower the demand in this region, the next stop could be $2,500. To avoid this bearish outlook, ETH needs to reclaim the $3,290 level.
SOL seems to be in an intense downtrend. The recent recovery turned out to be a dead cat bounce as the price pivoted from the $156 level. The most significant level right now is $129 which is also a 0.618 Fib retracement level.
A breakdown below $129 will put a retest of $105 level on the cards which may act as a major support.
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