After months and months on a continuous rise, we are finally seeing the crypto market marked blood red. The losses are being mainly driven by Bitcoin’s slide towards 49k, but is the current situation really worrisome? Let’s find out below.
It’s a technical correction, not a crash on bad fundamentals
Although many may be concerned about the current decline, those of us who have been in this market for some time and have analyzed beyond a simple current price, know that this is nothing more than a setback, healthy as well.
After a steep bullish rally, it was time to make way for a correction. It is true that my most recent forecasts did not say that the current scenario was the most probable, and the reason for this is that there is no reason to sit back and wait for falls at such a bullish moment as the one we have been seeing.
The determining factor behind the current decline: leveraged long positions that generate a strong sell-off spiral. This is not new, it usually happens in all markets; In addition to the leverage factor, fear tends to take over sentiment faster at prices than hope.
Despite the heavy losses in the last few hours, I can assure you that there is nothing to worry about, as long as you keep an eye on the medium and long term. Take a look at how the market corrected in the bullrun of 2017, so you can see how normal the current behavior is.
Fundamentals remain strong, as analyst Dilution-proof comments. Foreign exchange reserves continue to decline as high demand and growing shortages emerge, while the selling pressure from miners is very low.
Technical analysis of Bitcoin, cryptocurrency causing the current red in the crypto market
There is no doubt that the fall of the largest is what is causing the negativity in the crypto market, but let’s see how relevant that red is, and how far those losses could extend.
When we look at the weekly BTC chart we notice that the drop is not yet sending a really worrying signal.
The price is still in a fairly large sideways range, with resistance at around $ 60,000 and support at $ 45,000.
As long as the price remains locked in here, we remain in a normal correction of the medium-term trend. The target when the trend resumes is still $ 77,000.
Ethereum pulls back after completing a push
Unlike BTC, ETH did manage to boost its medium-term trend reaching a new all-time high at $ 2,644.67.
Now with the general crypto market crash, Ethereum is making a pretty normal pullback, so far visiting 38.20% Fibonacci.
This corrective process may take a bit longer, but the previous trend should put pressure sooner rather than later, pushing the price to a low of $ 2,990. Higher up the next target is $ 3,476.
Binance Coin Corrects After Big Momentum
Undoubtedly one of the cryptocurrencies that has stood out the most in recent weeks is BNB, capable of rising up to 183% in a matter of 3 weeks.
Like almost the entire crypto market, Binance coin is now in the red making a totally healthy retracement, visiting the 38.20% Fibonacci so far.
The same speech, it is possible that the correction extends a bit more, but already at this point a healthy retracement is complete, and the bulls could put pressure very soon.
The goals: 1st $ 758.50, 2nd $ 910.39.
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