Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin Bull Cycle Temporarily On Hold As Altcoins Bleed

The cryptocurrency market has opened the week's trading in substantial losses. The market is mainly painted red after Bitcoin pulled the majority of cryptocurrencies down. BTC slumped from price levels above $40,000 to an intraday low of around $32,000.

Altcoins appear to have suffered the most, as Ethereum's 20% loss in 24 hours shows. Ripple was not spared the axe as it sliced through the support at $0.3 and retested the buyer congestion at $0.26. Litecoin bulls are also gasping for air downstream after losing over 20% of its value. The rest of the losses in the market are double-digit losses, as highlighted by CoinMarketCap.

Blockchain, Technology, Smart, Bitcoin, Money

Image Source: Pixabay

Bitcoin recovery depends on this crucial short-term support

The bellwether cryptocurrency revisited lower price levels marginally above $32,000 on Monday during the Asian session. The hunt for a local bottom occurred after overhead pressure increased under the new all-time high of around $42,200. Various tentative support levels did little to stop the losses including $40,000, $37,500 and $35,500.

On testing the buyer congestion at $32,000, Bitcoin had a reflex rebound above $35,000. Meanwhile, the price is teetering at $35,450 while bulls fight to shake off the bearish pressure. A downward sloping Relative Strength Index seems to have reinforced the bearish grip.

However, closing the day above the immediate support at $35,000 would call for stability while encouraging more buyers to join the market (due to lower prices). Enough volume/tailwind must be created behind BTC to support a sustained recovery back to levels beyond $40,000.

As observed on the 4-hour chart, the trend is generally in the bulls' hands based on the price trading above the three moving averages; the 50 SMA, 100 SMA and 200 SMA. Recovery lacks a catalyst to complete the leg up to $40,000.

(Click on image to enlarge)

BTC/USD 4-hour chart

BTC/USD 4-hour chart

If support at $35,000 caves, we can expect overhead pressure to increase significantly. Similarly, panic selling might grip the market if the daily support two at $32,000 is broken, while the bearish leg would have the potential to revisit support three at $30,000.

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