For the past few days, BTC has tested levels below $11K, with a major coin selloff sparking a sharp decline.
The digital asset hit a new monthly low at $9,853 in today’s early sessions before correcting higher. This phenomenon has occurred on several occasions in the past week, with BTC dipping below the crucial $10k support level monetarily and then managing to come back up above it.
Tyler Winklevoss, the Gemini exchange CEO, referred to this show of strength in a recent tweet, arguing that BTC price has formed a new baseline at $10K.
Dips below this significant psychological level are always supported by an influx of buyers, meaning that the top crypto has mostly avoided a prolonged stay in the upper-$9000 regions.
Interestingly, the ongoing decline below $11K has coincided in a slip in the stock markets, with oil and other commodities correcting lower since the past weekend.
Dan Tapiero, the co-founder of DTAP Capita, addressed the apparent correlation between BTC and the legacy markets.
He suggested that safe-haven assets like Gold and Bitcoin should hold up amid plummeting stocks and unwinding retail call positions in the S&P 500 market.
BTC Price Remains at Risk of a Further Decline
Despite currently accelerating higher above $10K to trade above the $10,100 support level, the king crypto remains at risk of dropping further.
BTC remains in a bearish zone and faces major hurdles near the $10,400 level. The BTC/USD pair is changing hands at $10,141 during press time.
BTCUSD chart by Tradingview
Bulls remain under intense pressure to guard against a daily close below the $10K support. Such a scenario would result in BTC nose-diving towards $9,800 and $9,600 in the near term.
ETH Whales are Buying the Dip
The ETH price continued to trade in a bearish zone in today’s morning sessions as it broke below the $335 support level.
The second largest crypto then managed to find support near $310 and started an upside correction that drove the ETHUSD pair to highs of $350 during press time.
Recent dips in the ETH price have prompted many small traders to offload their ETH positions, and whales seem to have taken advantage of this sell off to buy ETH tokens on the cheap.
Ali Martinez, an on-chain analyst, pointed to the chart below that shows whales purchasing ETH positions when the altcoin was trading at its weekly low.
Whales Purchase ETH positions during weekly low | Source Santiment.com
According to Santiment’s on-chain data, approximately 68 new whales holding 1K to 10K ETH have joined the network in the past few days.
The whale accumulation may be responsible for today’s ETH price surge past the $340 and $345 levels of resistance.