BOTS crypto news week 15
The entire cryptocurrency market is currently undergoing a relatively large correction. Bitcoin fell about 20% in two days, many altcoins followed suit and some fell more than Bitcoin. The correction was caused by a confluence of bad news catalysts and cascading liquidations. This kind of correction is also part of investing in cryptocurrencies. These corrections are still scary, but to put it in perspective: since January, every month had a corretion of 20% or more. Is there more room for Bitcoin to fall or have we arrived at the bottom? We'll discuss it in this weekly update.
We talked about it briefly in the introduction: Bitcoin has undergone a major correction. Bitcoin dropped more than 20% in less than three days. The chart below shows that the rising wedge that Bitcoin was in for almost two weeks broke out bearish in the past week. What are the price levels where Bitcoin could find support after this bearish breakout?
The chart below shows the two support levels from which I expect Bitcoin to bottom out. The support zones are around US$52,000 and US$44,000. It can be seen that Bitcoin has already made a wick in the first support zone.
The oscillators are currently not giving much clarity on what Bitcoin might do next. Currently, I am keeping my eyes on these two support levels. Especially the support around 44,000 US dollars seems quite strong, but then 52,00 US dollars limit has to be broken first.
On the 4-hour timeframe it can be better seen that the bottom of the rising wedge is now acting as resistance, whereas previously it acted as support twice.
Bitcoin is now just above the support around 52,000 US dollars. If this support breaks then 44,000 US dollars is the next station.
Last week I indicated that 2,500 US dollars and 3,000 US dollars were the price targets in the event that support around 2,000 US dollars held. Ethereum rose to almost 2,600 US dollars before corralling with the falling Bitcoin.
Right now Ethereum is situated in a rising channel. The bottom of the channel has twice acted as support and the top twice as resistance. Ethereum also still has strong support around 2.000 US-dollar.
I expect Ethereum to find support at one of these two points and then continue its rising trend. Whether Ethereum finds support around 2,000 US dollars or at the bottom of the rising channel will depend on which support Bitcoin will bottom out at.
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.