Bitcoin and Ethereum Face Troubles amid Market Decline

By: Eva Baxter

The cryptocurrency market, dominated by Bitcoin and Ethereum, are facing uncertainty with bearish structure changes and extended losses in the market. In past day, more than $500 million of long and $100 million worth of short positions have been liquidated. An indicator of note that has taken a hit is the Bitcoin Coinbase Premium Gap, a metric that tracks the difference between the Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair). Recently, this indicator value turned negative suggesting potential selling instead of buying, contributing to a BTC price decline.

On the Ethereum front, prices extended its decline below $3,500, instilling fear of a possible drop toward the $3,200 support zone. A downside correction has begun below the $3,550 zone and if Ethereum fails to clear the $3,520 resistance, it could continue a downward trajectory. The state of the current market, largely controlled by American institutional traders show a bearish trend with a lack of upward momentum.

At the end of the positive Coinbase Premium Gap streak, Bitcoin had been able to achieve a new all-time high above $73,800, but as traders have switched to selling on the platform, the coin has dropped almost 9%, with its price now trading around $67,300. The Ethereum price followed a similar trend. This joint bearish market pull has caused digital currency investors to stay cautious while the market experiences a possible slouch.