Bitcoin tests $79K support as major altcoins slip

Bitcoin extended a pullback Wednesday, falling below $80,000 and testing the 20-day exponential moving average near $79,092. Trading activity clustered around that band as market participants monitored the short-term trend.

Traders outlined two near-term paths: a rebound from the 20-day EMA would open a route to $84,000 and potentially to about $92,000 and $97,924, while a decisive break below the EMA could lead to profit-taking and a decline toward the 50-day simple moving average near $74,571.

An analyst writing under the handle CRG noted that previous cycles saw a bull market start only after clearing the Ichimoku cloud and observed that Bitcoin has already risen above that cloud in the current cycle. Arthur Hayes, chief investment officer at Maelstrom, wrote that Bitcoin ‘retaking the $126,000 is a foregone conclusion’ and cited momentum from a break above $90,000 and broader macro drivers. A large trader using the handle pension-usdt.eth maintained a 3x-leveraged short position of 1,000 BTC, opened near $67,990 and worth about $81 million, and described the trade as ‘the trade makes sense.’

Major altcoins showed selling pressure. Ether tested support at its 50-day simple moving average near $2,245 and met resistance at higher levels; a close below the 50-day SMA would expose the ascending channel’s support line and could push ETH toward $1,916, while a move above $2,465 would be a first sign of strength and could aim for the channel’s upper resistance and as high as $3,050.

BNB rebounded from the 20-day EMA near $643 and hit resistance at $687; a daily close above $687 would set a path to $730 and $790, while a drop below the 50-day SMA at $623 would favor consolidation between $570 and $687. XRP remained under the downtrend line of its descending channel and nearby moving averages; a breakout could lift XRP to $1.61 and then to about $2.40, while failure to break higher could send it down to $1.27. Solana turned down from $98 resistance and was trading near its 20-day EMA around $89; rejection at that band could keep SOL oscillating between $76 and $98. Dogecoin bounced at its 20-day EMA near $0.10 but faced resistance at $0.12; a move past that level could push DOGE to $0.14 and $0.16.

Other mid-cap tokens were mixed. Hyperliquid fell below its 50-day SMA near $40.55 and risks sliding to $34.45 if $38.70 gives way. Cardano tested the 20-day EMA near $0.26 and remained in a $0.22 to $0.31 range. Zcash failed to sustain gains above $560 and could retreat to its 20-day EMA near $481 or lower to $400. Bitcoin Cash dropped below $443 and may test $419 and $375 if selling continues.

Market participants identified the 20-day EMA and the 50-day SMA as the technical levels to watch. Price action around the $79,000 band for Bitcoin will influence short-term positioning in major altcoins over the next few sessions.