Cryptocurrency Market Faces Unprecedented Volatility as Prices Shift Dramatically

The week started off tumultuously with intensifying market downturns affecting crucial cryptocurrencies. A critical test for Bitcoin (BTC) around $108,000 was anticipated, and recent reports detailed the acceleration of its decline. The primary focus now shifts to future projections for BTC and its potential recovery. Additionally, the performance of cryptos like AVAX, DOGE, and ETH is under close observation.

Bitcoin (BTC) Analysis

Bitcoin faced the anticipated test at $108,000 as previously outlined in recent forecasts. Although BTC managed a slight rebound to $109,500, the situation remains uncertain as the decline may not be over yet. The $108,350 level serves as a vital support, especially after failing to hold the $112,000 mark. Recovery might be signaled by reclaiming levels around $110,600 and $112,000.

However, market wavering could continue in the short term due to upcoming PCE data anticipation. The last hour saw over $300 million liquidated, with daily long liquidations surpassing $1 billion. Total liquidations have spiked by 323%, reflecting a significant drop in open positions. Despite the fears, short positions remain dominant and influential.

AVAX, DOGE, ETH Price Predictions

Ethereum (ETH) disappointed altcoin investors by failing to maintain $4,150 despite nearly reaching a new ATH. A decline to 0.035 BTC equivalency risks deepening the dominance of BTC, with additional risks at 0.034 and 0.0324 levels. If ETH doesn’t swiftly rebound from $3,860 USD, further sales across Ethereum and altcoins may intensify amid the current market fear.

AVAX experienced one of the steepest losses among altcoins, with $29 and $27 as key thresholds. Surpassing these levels might extend the loss zone to $20, hinting at a broader market trepidation.

Dogecoin (DOGE), once a high-gain asset, is experiencing rapid losses similar to its previous gains. After slipping below the critical $0.255 mark, it’s now targeting $0.21 support. A reversal is plausible if this level holds, contingent upon BTC and ETH dynamics.