By Adam Clark
Bitcoin and other cryptocurrencies were tumbling early Thursday. The digital asset now looks to be nearing multiple crucial support levels.
The largest crypto was down 4.2% over the past 24 hours to $57,482. It hit a record high near $74,000 in mid-March amid a surge of interest from new spot exchange-traded funds but its price has dropped since then.
“A drop below $58K will disrupt the bullish picture, breaking the concentrated support area in the form of the 61.8% level ($60.3K), the 200-day moving average ($58.3K) and the previous low ($58.2K). In this case, be prepared for a drop to $51.0K with alarming consequences for the entire cryptocurrency market,” wrote Alex Kuptsikevich, a market analyst at FxPro.
From the current position, a 12% drop toward $51,500 is more likely than the same amount of growth to $65,800, which marks the 50-day moving average, according to Kuptsikevich.
Ether, the second-largest crypto, was down 4.4% at $3,140 but has risen more than 60% over the past 12 months.
The Securities and Exchange Commission recently approved critical rule changes to allow spot Ether exchange-traded funds to trade. The final approvals for the ETFs should come this summer, U.S. Securities and Exchange Commission Chair Gary Gensler told senators in a recent budget hearing.
Smaller cryptos, or altcoins, were diving with Solana falling 8.8%, Cardano dropping 5.2%, and Dogecoin losing 6.3%.
Write to Adam Clark at adam.clark@barrons.com
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