FX.co ★ Bitcoin goes down 5% and triggers fall of ETH and altcoin market: what technical charts forecast about further price movement

Over the past few days, the major cryptocurrencies stabilized quotes and were gradually approaching important resistance marks. However, over the past 24 hours, the total market capitalization fell by 6% to $117 billion. Bitcoin was the first to collapse and triggered a further drop in the entire altcoin market. All major top 10 coins showed negative price movement over the past 24 hours. Notably, there is still a high correlation between BTC and the altcoin market.

Over the past 24 hours, the main cryptocurrency has plunged 5% and is quoted at $45,500 at 12:00 pm. The coin effectively made a bearish break of the support line at $48,000 and continued its downward movement to $46,800 and $46,000. Bitcoin ended September 19 with gains and closed above $48,000. However, on September 20 it started falling and ended the trading day by forming a bearish candle on the daily chart. On the same chart the bitcoin made a bearish break of the local bullish wedge, which aggravated the decline. Technical indicators keep indicating a downward movement: MACD managed to form a bullish cross. However, the momentum was immediately lost, while stochastic and RSI continue a strong downward movement. The coin is most likely to break down the $45,500 boundary, keeping a downward movement to the round mark of $45,000. With its bearish breakout, the price may face the final resistance at $42,800, following the mid-term trend reorientation. The market is bearish, but due to another local collapse, BTC's onchain activity has stabilized again. Besides, the number of unique addresses in the asset's network has approached the current price level.

Bitcoin's fall provoked significant losses in the altcoin market. Ether and Cardano suffered greatly. In the past 24 hours, the coin has fallen by 7.5% and is quoted at $3,100. Notably, ether began the consolidation period. However, the volume of daily trading is at a low level, around $16 billion. The asset deals with bitcoin's similar situation: on September 19 the cryptocurrency closed with a bearish candle and continued falling on September 20. Coin's technical charts keep indicating weakness of buyers and continuation of a downward movement. The MACD indicator formed a bullish crossover with a downward trajectory. The stochastic and RSI charts show a similar pattern as they keep giving signals of a further correction. Moreover, unlike bitcoin, ether's price drop had no effect on the elimination of divergence between the number of unique addresses and the market value of the asset. ETH price fall is most likely to continue and the coin risks to test the threshold at $3,000. With its breakdown, the market's position may change in a bearish way.

If ether and bitcoin have not reached important positions for growth, the fall of new coins in the cryptocurrency has aggravated. ADA coin further plunged due to the market situation and update problems, to which we will devote a separate article. Consequently, over the past 24 hours ADA has lost 9% and at 12:00 pm the cryptocurrency is quoted at $2,100. The main technical indicators continue to give bearish signals, indicating the probability of the main support line retest at $2. The first fall of the cryptocurrency jeopardized the entire uptrend, and the current collapse has finally ended it. With unsuccessful (so far) Alonzo's update, effective price fixing above $2 may be considered a success.

Solana also continues its downward movement and dropped by 12% over the past 24 hours. At 12:00 pm, the coin is quoted at $142 and has chances to test the nearest support zone. This is indicated by the two-hour price movement, as well as trading volumes that have fallen to lows. It is very important for the coin to hold near $140 in order to make a quick reversal to $160-$170 for a further consolidation and rise. However, the technical indicators report that the price keeps falling. Stochastic and RSI continue a downward movement and MACD has formed a bearish crossover, which aggravated the coin's decline. The asset is most likely to continue falling, the tipping point will be at $120. However, there are reasons to believe that the rebound will happen much earlier.

Concluding observations, we may say that there were no special fundamental reasons for bitcoin's fall. The market might perceive with anxiety the next changes in the infrastructure legislative project and it coincides with the events. However, it is most likely about big capital, which continues to play the downside and move the price in opposition to market sentiment. Fear and greed sentiment reached the 50 mark as another local collapse occurred. This indicates the continuation of the accumulation period, and the whales are not ready to move the market to the upside. Besides, it is worth highlighting a growing correlation between the altcoin market and bitcoin. This signals a growing dominance of BTC and the weakness of altcoins at the current stage, which may indicate the gradual end of the altcoin season.