Major Cryptocurrencies BTC & ETH Experience Sharp Decline, Wiping Out Weekly Gains

By: Eva Baxter

The value of Bitcoin took a sudden 6.5% plunge on Dec. 11, falling below the $41,000 mark and erasing around five days worth of gains. The abrupt fall involved a decline from $43,357 to as low as $40,659 within a short span of 20 minutes. Ethereum (ETH), the second-largest cryptocurrency in by market cap, followed suit, experiencing a drop of over 8.9% during the same period. However, ETH prices have since stabilized somewhat, with the cryptocurrency trading for $2,233, a 5.3% decrease within the day.

According to the TradingView data, Bitcoin was trading slightly up from the local low at $41,960. Despite a strong performance earlier, with a break above the $40,000 resistance and steadily climbing, Bitcoin failed to test the $45,000 resistance resulting in a heavy drop. Major altcoins along with BTC and ETH also began the Asian business day in deep red, causing over $335 million in liquidated positions in the past 12 hours.

Currently, support appears to be forming for BTC near the $40,000 mark, while resistance builds around the $43,200 mark. Should the value of Bitcoin fail to rise above this resistance zone, market analysts predict a potential for further decline. The next major support threshold is anticipated to be around $40,500 and if there is a move below $40,000, the price can possibly drop toward $38,500 in the near term.