FX.co ★ Dramatic Tuesday for cryptocurrencies: Morning Review on 02/23/21

Yesterday, the cryptocurrency market began a downward correction. Closer to the middle of the European trading session on Tuesday, the fall turned into "falling knives". Over the past four hours, the top coins have lost almost as much as they did all of Monday. The daily decline of bitcoin is estimated at almost 19%, Ethereum has already lost 23.83%, Ripple has fallen by 30.03%, Bitcoin Cash has declined by 32%, and Litecoin has weakened by 23.63%. The main question that now interests traders is where the stop will be.

Bitcoin has dropped to $ 45,000 per coin. The quotes at the moment broke through the local support level of 45553.17, after which they partially recovered. From what point the big players will start buying out the cheaper bitcoin, it is still unclear. As the nearest support for BTCUSD, it is worth considering the horizontal 41980.24, if the current level of 45553.17, marked with a red dotted line is broken.

Bitcoin Cash broke through the level of 465.48 during the fall, but did not gain a foothold above it. This is for now, as the weakening of quotations may continue. Against this background, it is worth considering the 406.38 horizontal as the nearest support for BCH USD.

Ripple fell, reaching almost the support level of 0.3512. So far, some of the losses have been restored, and XRP USD quotes have returned to the range of 0.4348 - 0.5564. The probability that the pair will stay in this range is low. Therefore, the level of 0.3512 should be considered as the nearest technical reference point to the south.

Ethereum fell below the level of 1369.23 today. After the losses were partially returned, the price of ETH USD moved into a wide range, limited by the support level of 1436.48 and the resistance level of 61.8 on Fibo Expansion. Whether its lower bound will be able to stand, and for how long is an open question. So far, the horizontal of 1369.23 remains an actual benchmark for the decline of the second cryptocurrency.

Litecoin fell below the level of 171.25 today, but then returned to the corridor above it. Now the local resistance for LTC USD is the horizontal 186.48. If the decline resumes, the pair can move south up to the support level of 146.04.