- Bitcoin price has fallen below the key support level at $46,000.
- Market indicators suggest a longer road to recovery.
- Meanwhile, Ethereum market dominance is at 20% while Bitcoin dominance is at 38.6%.
The crypto market is still in a bloodbath, and all hopes of having an over-the-top end of the year rally seems to have evaporated. In particular, Bitcoin has fallen below a key support price at $46,000. This support level has been pivotal to keep Bitcoin price from going bearish.
As we can see from the chart above, the $46,000 key support has been crucial to Bitcoin price recovery. More than a week ago, this was broken when Bitcoin price plunged to as low as $43,000, although bulls were able to keep Bitcoin from falling into bear territory.
However, Bitcoin price has continued its downtrend for the past week or so, and today, it has broken the crucial $46,000 support. At the time of writing, Bitcoin price is at $45,845.81, according to CoinGecko.
Bitcoin Price Falling Wedge
On the bright side, we may be seeing the formation of a Falling Wedge pattern on the 1-day chart.
A Falling Wedge is known as a bullish pattern that indicates a convincing trend reversal. However, for the trend reversal to manifest, Bitcoin has to have high trading volume particularly due to traders who are willing to buy. At the moment, the exchange volumes are normal, which means that traders are still waiting before buying in.
Ethereum Price Consolidation
On the other hand, Bitcoin dominance has continuously fallen below 40%. Currently, Bitcoin’s market dominance is at 38.6%. Meanwhile, Ethereum’s market dominance is at 20%.
As seen on the chart, Ethereum price has started to consolidate, and some people may suggest that Ethereum is going for a downtrend. However, there is a possible Triangle pattern emerging soon, and once it forms, buyers may become tempted to buy Ethereum. Like Bitcoin, Ethereum’s trading volume is normal.
If Bitcoin and Ethereum do not pull off some miraculous bullish antics soon, the crypto market may see a prolonged consolidation which may lead to a bearish season, given that the bulls appear to be nearing exhaustion. Ethereum seems to be in a better spot in 2022, given that the market is expecting it to roll out its Proof-of-Stake (PoS) upgrade. If that happens, Ethereum may cause people to rally behind it instead of Bitcoin.
Disclaimer: No information in this article should be considered as investment advice. CryptoNewsLand does not make assurances about the future performance of the tokens mentioned above nor the success of their project. Everyone is encouraged to make his own research before making any investment decision, given that cryptocurrencies are known to be volatile in nature.
