Last night, Bitcoin (BTC) fell from $3,420 to $3,355, breaking the $3,400 support level which had been in place for the past week.
Today, Bitcoin (BTC) has been trading between $3,330 and $3,390. Based on today’s data, it seems like there is now resistance at $3,400. And there is another resistance level at $3,500-$3,600, which was the price of Bitcoin (BTC) following the January CME Bitcoin futures expiration. If Bitcoin (BTC) can manage to rise past this resistance level it could trigger a short squeeze rally.
Following last night’s drop, the new support level appears to be $3,300 to $3,350. The longer-term chart shows that Bitcoin (BTC) has generally been declining towards the $3,100 support level since the latter half of December. This support level marks the lowest price Bitcoin (BTC) has reached during the bear market so far.
Other major cryptocurrencies have followed Bitcoin (BTC) into the red today. Ripple (XRP) is down 2.8 percent, Ethereum (ETH) is down 2.3 percent, EOS is down 1.7 percent, Bitcoin Cash (BCH) is down 1.5 percent, Litecoin (LTC) is down four percent, Tron (TRX) is down 2.4 percent, Stellar (XLM) is down 4.9 percent, Cardano (ADA) is down 3.5 percent, Monero (XMR) is down 0.5 percent, IOTA (MIOTA) is down 2.4 percent, Dash (DASH) is down 3.3 percent, and Dogecoin (DOGE) is down 2.3 percent.
A strange anomaly today is that Bitcoin SV (BSV) was declining with the rest of the crypto market until a sharp rally late this morning. It is actually up 2.2 percent on the day.
The total crypto market cap has dropped from $113.5 billion to $111.5 billion over the past 24 hours and went as low as $111 billion during the morning. This is now within striking distance of the bear market low of $100 billion.
If February is a month dominated by short sellers as suggested by the decline in Bitcoin’s (BTC) price since the Jan. 25 CME Bitcoin futures expiration, then a re-testing of bear market lows is quite possible before the month ends.