Bitcoin Approaches Make-or-Break Price Level, As XRP Drops To Critical Support Level

A mix of regulatory pressure and leveraged positioning has sparked a market-wide sell-off and over $1.7 billion in liquidation in the last 24 hours. As a result, Bitcoin has endured quite a rough price performance over the past week, dropping from $118,000 to the $112,000 zone. 

The $112k now acts as a make-it-or-break-it zone. Analysts are watching the price reaction of Bitcoin around this zone. Equally, XRP has fallen to the critical support level of $2.80, and it may result in either a price collapse or a continuation of the rally.

Bitcoin (BTC) Price Drops: Healthy Dip or Time To Sell?

The Bitcoin price has faced a steep decline since failing to cross $118,000 last week. The decline gained pace as the BTC price fell below the $115,000 level, causing a drop to the $112,000 support. Over $277.5 million in long Bitcoin positions were liquidated as a result of the decline.

The Bitcoin price now holds around $112,500. While $110,500 is a stronger support zone, the $112,500 zone is a key area in an uptrend pattern. Bitcoin’s recent rise is part of a head-and-shoulder pattern, as highlighted by the analyst on X, Ali_Charts. 

If Bitcoin experiences strong buying pressure around the $112.5 support (the right shoulder), then the uptrend will continue. The uptrend could push the Bitcoin price to a new all-time high around $130,000, with $118,000 being the major resistance level to watch.

However, if the Bitcoin price breaks below the $112,500 resistance and drops to $110,500, we could see a price drop to the $107,000 support. 

XRP Price Drops To Critical Support Level

Joining the market-wide drop, the XRP price plunged from $3.10 to stabilize around the $2.80 support level. Despite the price drop, the XRP price is still within a broader ascending structure, which began earlier in June when the uptrend began.

Provided the $2.80 support level holds, XRP could regain momentum and try to recapture the high of $3.0 and $3.20. Breaking above $3.30 will mean XRP has broken out of a month-long consolidation and possibly retested the channel top of $3.60.

The analyst Kamran Asghar shares our sentiment, tweeting that $XRP is at a critical juncture. He explained that the price is consolidating in a tight range and is holding a key support zone. He predicts that if the XRP price holds this support level, it could rally to $3.7.

However, in case the support at $2.80 collapses, the next major level of demand is at around $2.30, which is close to the bottom of the rising channel that has supported the price increase. The RSI is also floating at the level of the neutral 50 zone, which means that there is no strong momentum.

Final Thoughts

The recent performance of Bitcoin and XRP shows that the market is at a make-or-buy point, where momentum might go either way. The market should be observed cautiously by traders and investors in the coming days.