The cryptocurrency market as a whole is once again blanketed in red, with Bitcoin falling to a multi-month low.

Bitcoin’s price has tanked for four consecutive days, breaching the psychological support level of $35,000. The probable freefall will drag BTC down to the $33,000 support level if sellers maintain this decline.

According to CoinGecko, the most popular and largest cryptocurrency by market capitalization lost 4.5 percent during the past 24 hours, breaching a crucial support level and posting a daily low of $34,405.

The market capitalization of Bitcoin fell to $657 billion, CoinMarketCap data show. As of March 28, this number exceeded $900 billion.

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The price of BTC has crashed for four straight days, breaking past the psychological support level of $35,000. (TechnoPixel)

‘Extreme Fear’ For Bitcoin

BTC is presently selling at approximately $34,515, down roughly 10% in the past week and down 40% year-to-date.

The Bitcoin Fear and Greed Index reached a level of “extreme fear” as a result of a loss of about $6,000 in just a few days, which inevitably caused a significant shift in mindset.

Rick Bensignor of Bensignor Investment Strategies said in a note, “Bitcoin’s failure to hold key support has increased the likelihood of a severe decline.”

Bitcoin has mainly followed the downward trend of equities markets as investors across asset classes react to indications of future interest rate hikes. In the past 24 hours, the market for cryptocurrencies as a whole has fallen by 4.4%.

BTC total market cap at $638 billion on the daily chart | Source: TradingView.com

No ‘Counter-Trend’ Indicators

Katie Stockton, managing partner at Fairlead Strategies, wrote in a note, “Bitcoin currently has no counter-trend indications, but the equities market appears primed for a comeback next week, which we hope will carry over to cryptocurrencies.”

The majority of Bitcoin’s loss occurred after the Federal Reserve raised the Federal Funds interest rate by 0.50 percentage points, which triggered a stock market selloff and effectively promised two more 0.50 percentage point increases.

Institutional investors began selling Bitcoin exchange-traded funds more than a week ago, according to a CoinShares report. Prior week Bitcoin outflows totaled $133 million, the biggest figure since June last year.

Bitcoin is predicted to drop to $30,000. (MoneyWeek)

Analyst Predicts A Drop To $30K

Carter Braxton Worth, the founder of Worth Charting, predicts that Bitcoin’s price will drop by another 13% to $30,000.

As previously indicated, alternative coins are also suffering, with red dominating virtually all charts. Ethereum leads this negative trend with a daily decline of 4.5 percent.

Binance Coin has lost a comparable percentage and is currently trading below $360. Additionally, Avalanche, Cardano, Dogecoin, Ripple, Solana, Polkadot, NEAR, and Shiba Inu are in the red.

Last week, the head of research at IntoTheBlock, Lucas Outumuro, told Fortune, “Until the market begins to look past the influence of the Fed’s quantitative tightening and rate hikes, I believe it impossible for Bitcoin to develop a broader uptrend.”

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Featured image Live Science, chart from TradingView.com

Ethereum started a sharp decline from the $3,530 zone against the US Dollar. ETH price dived to $3,260 and is currently correcting higher.

• Ethereum started a major decline from the $3,530 resistance zone.
• The price is now trading below $3,400 and the 100 hourly simple moving average.
• There is a major bearish trend line forming with resistance near $3,460 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could face a major resistance near the $3,425 and $3,450 levels.

Ethereum Price Dives 5%

Ethereum struggled to gain pace above the $3,525 and $3,530 resistance levels. ETH topped near the $3,525 level and started a major decline.

The price declined below the $3,450 and $3,420 support levels. There was also a move below the $3,400 level and the 100 hourly simple moving average. Finally, there was a sharp decline below the $3,300 level. It traded as low as $3,261 and is currently correcting losses.

There was a recovery wave above the $3,300 level. It broke the 23.6% Fib retracement level of the recent decline from the $3,580 swing high to $3,261 low.

The price is now facing resistance near the $3,400 level. The next major resistance is near the $3,420 level. It coincides with the 50% Fib retracement level of the recent decline from the $3,580 swing high to $3,261 low.  There is also a major bearish trend line forming with resistance near $3,460 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

If ether price clears the $3,450 resistance zone, it could start a decent increase. In the stated case, the price could climb above the $3,500 zone. The next key barrier is near the $3,525 level, where the bears might take a stand.

More Losses in ETH?

If ethereum fails to start a fresh increase above the $3,420 level, it could start a fresh decline. An initial support on the downside is near the $3,300 zone.

The next major support is near the $3,250 level. If there is a downside break below the $3,250 support, the price could accelerate lower. In the stated case, there is a risk of a move towards the $3,050 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,250

Major Resistance Level – $3,420

Bitcoin is still on a decline struggling below the $40K mark. This had been a significant hold point for the bulls but once the bears had successfully dragged the digital asset below this critical support point, it has been a long way down since then. While a reversal is likely at this point, it is also possible that the digital asset continues to record more decline, leading to as low as $34K.

Why Bitcoin Could Reach $34K

A new report from Delphi Digital outlines a possible trend for bitcoin. The digital asset which has recorded an extremely volatile month in February has shown no signs of slowing down. Although its price has touched as low as $33K this month, it has also seen a high of $45K. But neither of these two levels have been able to hold with BTC now trending around the midpoint.

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Fluctuations are a natural part of the market, which is one of the biggest draws for investors, but it can also be a big problem for the digital asset. Because bitcoin is just as likely to make a large swing down as it is to move upwards.

BTC loses support above $40K | Source: Delphi Digital

Delphi Digital notes that the crypto market still remains range-bound through the volatile month of February. Thus after breaking through the $38.5K support level, bitcoin is likely to revisit range lows at around $34K. On the weekly chart, the wicks to the update are showing that it is currently a seller’s market, which could lead to more downtrends in the near future.

Struggle Becomes More Apparent

Sell pressure has been mounting on bitcoin since the December crash. This has become more apparent in market sentiment and the various dips that have accompanied the market-wide sell-offs, and bitcoin is still trying to shake off this multi-month sell pressure, says Delphi.

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The report also notes that bitcoin has continue to stall for the past two weeks. Even in this state, it has been unable to reclaim any weekly support structure or the midpoint of the yearly range, both very important levels if the digital asset plans to mount another recovery.

BTC declines to $37K | Source: BTCUSD on TradingView.com

If the cryptocurrency can once more recover above $40K, it would need to hold above $40K-$41K to try to seal in another bullish structure. Since this structure has failed to hold in recent times and has broken below the $38.5K mark, then $34K is the next likely stop point. This does not mean it automatically forms support as bears will continue to pull the asset down.

Featured image from CNBC, charts from Delphi Digital and TradingView.com