3 New Bitcoin (BTC) Support Levels to Watch, Toncoin (TON) Saw Biggest Price Drop Ever, Solana (SOL) on Strong 8% Rise as Ethereum Plummets

Bitcoin has lost its footing at around $55,000, which triggered one of the biggest liquidations in the history of the cryptocurrency market. Considering the dire state we are in, it is important to find and highlight the threshold that might act as grounds for a reversal in the foreseeable future. 

Bitcoin's first significant support level is likely to be between $52,000 and $50,000. Because of the psychological effect of the round number, this range is important. Furthermore, historical evidence indicates that this range has previously functioned as both resistance and support, making it crucial for a possible reversal.

Examining the weekly chart, we can see that the $47,000 level is critical. This level is in line with the weekly 200 EMA and relates to a prior consolidation phase. According to many, the 200 EMA is a long-term support level, and a bounce from this mark might give Bitcoin the momentum it needs to start rising again. 

If Bitcoin falls from this level, it may signal a more significant correction. In the $42,000–$40,000 range is the next noteworthy support zone. Historically, this region has served as a solid support level and the base of significant corrections. Its significance is increased by the fact that the 200 EMA on the daily chart also resides in this range. Maintaining this level might stop more sizable drops and even pave the way for a rebound.

Toncoin's biggest drop

Toncoin (TON) went through possibly the biggest in percentage terms price drop in 48 hours. The Telegram-backed asset lost around 20% of its value and tumbled from around $8 to $6.6, practically losing all the gains it had since the beginning of the month. 

There are several reasons for the sudden drop in Toncoin's value. First, a number of cryptocurrencies have seen large sell-offs as a result of the general bearish sentiment on the market. The market has been affected negatively, including Toncoin, as a result of Bitcoin's recent decline below crucial support levels. 

Related

Fri, 07/05/2024 - 13:10

Former Mt. Gox CEO Breaks Silence on 141,686 Bitcoin Payback

Gamza Khanzadaev

The price of TON has crossed above the 50 EMA and is presently circling around the 100 EMA, according to an analysis of the technical indicators. Although there have been strong support levels at this level in the past, there are worries that they may not hold this time due to the severity of the recent sell-off. 

Additionally, there has been a noticeable decline in the Relative Strength Index (RSI), suggesting that Toncoin is approaching the oversold region. Prices may continue to decline despite the possibility of a brief uptick due to the general bearish momentum. 

Solana's unexpected source of strength

The only thing you would not expect amid this catastrophic market drop is the strong movement upwards from one of the assets that should have been following the market more than the others. Solana is showing a positive dynamic against Ethereum, which could be a signal that you should not ignore. 

Particularly considering the general pessimism on the market, Solana's recent performance is impressive. Solana has managed to gain 8% during the substantial declines of major assets such as Ethereum and Bitcoin. 

This suggests that there may be underlying bullish factors and that investor confidence is strong. Observing the daily chart, Solana is now targeting the 100 EMA after breaking above its 50 EMA, a crucial resistance level. This upward trend is especially noteworthy because it stands in stark contrast to Ethereum's downward trajectory. 

Additionally, there appears to be more buying pressure and momentum supporting Solana's price action, as indicated by the rising Relative Strength Index (RSI). However, it is important to keep in mind that Solana is still losing value against the U.S. dollar.