Bitcoin’s technical landscape took a hit today as the cryptocurrency slipped below its critical 100-day moving average, marking a significant shift since April. This decline, which saw Bitcoin’s value dip over 1% to touch a low of $109,172, underscores a bearish sentiment that has put Bitcoin at a disadvantage against major tokens like Ether (ETH), XRP, and Solana (SOL).
Bitcoin’s Bearish Turn
The fall below the 100-day simple moving average (SMA), a key momentum and support/resistance marker, signals a concerning development for Bitcoin enthusiasts. The cryptocurrency also slid beneath the Ichimoku cloud, a move considered bearish in technical circles. This dual breach paints a picture not unlike the February breakdown, which led to a dramatic sell-off pushing Bitcoin to $75,000. This mirrors the recent market turbulence where Crypto Markets Lose $200 Billion as Bitcoin’s Price Tumbled to 6-Week Low.
Omkar Godbole, a CoinDesk analyst and Chartered Market Technician, highlighted the importance of the next support levels. “The critical levels to watch are the $105,390 mark, which represents the 38.2% Fibonacci retracement from the April-July rally, and the 200-day SMA at $100,928,” he noted. Overcoming the recent lower high of $117,416, established on August 22, remains essential for Bitcoin to negate this bearish setup.
XRP, ETH, and SOL: Holding the Fort
While Bitcoin grapples with its technical issues, its counterparts are holding their ground more firmly. XRP, although trading within the Ichimoku cloud—a zone emblematic of market indecision—has managed to stay above its 100-day SMA. This indicates a period of consolidation rather than a clear trend for XRP, with the market seemingly waiting for a catalyst.
Ether and Solana, in contrast, maintain their positions above both their 100-day SMAs and Ichimoku clouds. This resilience suggests that should market sentiment shift to a risk-on environment, ETH and SOL could potentially outperform both Bitcoin and XRP. This trend is further explored in Ether, Solana, BNB Outshine Bitcoin as Cryptos Rebound.
“Ether and Solana are showing strength,” commented market strategist Alex Berenson. “They’re poised to capitalize on any positive market sentiment,” he added, pointing to their potential for outperformance if the market turns favorable.
Historical Context and Future Implications
Historically, Bitcoin’s performance has often set the tone for the broader cryptocurrency market, but the current divergence with ETH, XRP, and SOL highlights a possible shift in market dynamics. Bitcoin’s recent technical struggles have raised questions about its immediate trajectory, especially given the looming $14.6 billion Bitcoin and Ether options expiry, which suggests a market bias for Bitcoin protection.
As the market digests these developments, the coming weeks could prove pivotal. The intersection of technical indicators and market sentiment will likely determine if Bitcoin can reclaim its footing or if ETH and SOL will continue to carve out larger shares of investor interest.
The crypto landscape is fluid, and today’s setback for Bitcoin is a reminder of the market’s volatility. Investors and analysts alike will be watching closely to see how these trends evolve, with an eye on those critical support levels and the potential for a risk-on sentiment that could redefine the current dynamics.
Source
This article is based on: Bitcoin Suffers Technical Setback, Loses 100-Day Average as XRP, ETH and SOL Hold Ground
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
