Bitcoin and the Cryptocurrency Market Pull Back Further into the Area of Last Month’s Lows

Along with the rest of the cryptocurrency market, Bitcoin is pulling back further into the area of last month’s lows.

Bitcoin is pulling back further into the area of last month’s lows, as is the rest of the cryptocurrency market. The sell-off intensified with the start of the new week, pushing total capitalisation back 3.6% in 24 hours to $2.26 trillion, which we last saw on May 13.

The retreat on all fronts is organised, reflecting the global decline in traction in risk assets, which is hardly surprising.

Bitcoin looks better than many major coins, losing 3.3% on the day to $62.2K. We still don’t see technically important support levels up to the $60K area, but beyond that, it may not be so easy for the bears. In addition to the psychologically significant round level, the 61.8% Fibonacci retracement level is centred in this area. The next sensitive area is near $58K; the 200-day moving average is pulled up here, and there is the lower boundary of the downward range, which has been in force since March.

Ethereum is holding up better than many altcoins, and it is just starting to test the $3300 pivot area. That said, Solana and Litecoin have been at lows since late February, and Cardano has pulled back into the prolonged consolidation area of November. Surprisingly, the Cryptocurrency Fear and Greed Indexes rate the situation as “Neutral.” This makes one think that the bottom is just yet to be reached.

Among the altcoins in the top ten, we single out Solana, which has been trading in the $120-130 range since February. Now the lower boundary of this consolidation is being tested again, and if it breaks through, we will quickly reach the lows of the spring correction. Among the large-cap altcoins, Solana is also the worst performer over the past seven days, losing 13.5%.

After a strong rally in the first half of last week, XRP has pulled back sharply and is now trading near the $0.90 level again. This is followed by a critical support zone in the range of $0.83-085, which is formed by the 200-day moving average and the lower boundary of the consolidation, which has been observed since March.

After rising above $200K in the first half of last week, Dogecoin has also pulled back sharply and is now testing the $0.155 level again, where the lower Bollinger Band is located on the daily chart. This is followed by another critical support zone in the range of $0.143-145, which is formed by the 200-day moving average and the lower boundary of the consolidation, which has been observed since March.