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Quick glance: It has been an absolute bloodbath across the cryptocurrency spectrum over the past few days. We saw BTC and ETH dropping to approx. $33,000 and $2100 respectively. Retail traders and investors seemed to rush for cover.
Market in the last 24hrs
It has been quite a volatile market over the past 24 hours. The market seemed to be hitting new lows every hour, after a period of massive volatility. However, following the recovery across the stock market, the cryptocurrency market imitated the same move. The traded volumes also shot up almost 40%.
Today’s Trend analysis
On a weekly time frame, we can see that both BTC and ETH are very close to the weekly support zones. For BTC, the support zone lies between $28,800 to $31,500. For ETH, the weekly support level lies at $1800- $1900. If this level breaks, we could see BTC heading towards $27k and ETH hitting $17k. Needless to say, both would be available at a bargain.
However, we are seeing a quick reversal on a smaller time frame at the moment. Although this might be the beginning of a recovery or simply a dead cat bounce. On the technical front, we do see a double-top formation, which is again a bearish pattern. In that case, we could expect a further dip in the coming times.
The ongoing cryptocurrency crash isn’t being caused by something crypto specific. Financial markets are crashing across the board. Unfortunately, crypto is still quite correlated with the stock market, and anything that happens there will eventually affect the crypto market. Fears over the Federal Reserve increasing interest rates have kept financial markets on their toes. and the answer seems to be China. Property developers in China have started to implode, and this has driven the Chinese central bank to lower interest rates in an attempt to push domestic markets higher. This is a pretty big deal because China had previously stated that they would do nothing of the sort.
While we do believe that the cryptocurrency market could go lower from here, that doesn’t mean the market is dead. With several institutions raking in billions of dollars, it is a good buying opportunity. A look at the on-chain metrics clearly shows that the whales are continuously buying the dip right now.
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The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 24-hour candles.
Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .
----------------------------------------------------------------------------------------
Do give a follow if you liked the content.
Keep supporting:)
-Mudrex
Quick glance: It has been an absolute bloodbath across the cryptocurrency spectrum over the past few days. We saw BTC and ETH dropping to approx. $33,000 and $2100 respectively. Retail traders and investors seemed to rush for cover.
Market in the last 24hrs
It has been quite a volatile market over the past 24 hours. The market seemed to be hitting new lows every hour, after a period of massive volatility. However, following the recovery across the stock market, the cryptocurrency market imitated the same move. The traded volumes also shot up almost 40%.
Today’s Trend analysis
On a weekly time frame, we can see that both BTC and ETH are very close to the weekly support zones. For BTC, the support zone lies between $28,800 to $31,500. For ETH, the weekly support level lies at $1800- $1900. If this level breaks, we could see BTC heading towards $27k and ETH hitting $17k. Needless to say, both would be available at a bargain.
However, we are seeing a quick reversal on a smaller time frame at the moment. Although this might be the beginning of a recovery or simply a dead cat bounce. On the technical front, we do see a double-top formation, which is again a bearish pattern. In that case, we could expect a further dip in the coming times.
The ongoing cryptocurrency crash isn’t being caused by something crypto specific. Financial markets are crashing across the board. Unfortunately, crypto is still quite correlated with the stock market, and anything that happens there will eventually affect the crypto market. Fears over the Federal Reserve increasing interest rates have kept financial markets on their toes. and the answer seems to be China. Property developers in China have started to implode, and this has driven the Chinese central bank to lower interest rates in an attempt to push domestic markets higher. This is a pretty big deal because China had previously stated that they would do nothing of the sort.
While we do believe that the cryptocurrency market could go lower from here, that doesn’t mean the market is dead. With several institutions raking in billions of dollars, it is a good buying opportunity. A look at the on-chain metrics clearly shows that the whales are continuously buying the dip right now.
----------------------------------------------------------------------------------------
The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 24-hour candles.
Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .
----------------------------------------------------------------------------------------
Do give a follow if you liked the content.
Keep supporting:)
-Mudrex
