With the U.S. market indexes hitting a new 52-week low, the overall crypto market is also struggling with Bitcoin trading under $19,000. Is it time to short the giants?
The global selling pressure does not seem to be reducing with the SPX hitting a new 52-week low. At the moment, Bitcoin is unable to flip the resistance at $20,000, and it doesn’t seem like a breakout will be seen until global cues recover. Traders are advised to be cautious at the moment as markets worldwide could be seen tumbling on Friday! In this week’s analysis, we will analyze the support levels to check if a breakdown in the crypto markets is about to happen.
BTC/USDT
In last week’s analysis, it was observed that Bitcoin had been trapping traders from both sides of the chart and that is exactly what was seen once again on Sunday. This is why the market seems very uncertain at the moment as there is no clear direction.
Earlier this week, Bitcoin had formed a symmetrical triangle and a bullish breakout was seen. However, the breakout was cut short after the fall in the global markets. Bitcoin has now broken the lower supporting trendline and has formed a bearish structure.
It is looking like Bitcoin will now approach the 52-W low at $17,600 like the American indices. Traders shouldn’t expect any bullish scenario until the resistance at $20,500 is flipped. If a close below $18,200 is seen on the 4-hour time frame, expect a sharp fall to $17600.
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ETH/USDT
Since our previous analysis, ETH has been consolidating between the range of $1,420 and $1,280. At the time of writing, it is trading dangerously close to the support at $1,280 and a breakdown does seem impending.
It is very important for the coin to sustain over $1,280 as a clear path to $1,000 can be seen. If there is a close below $1,280 on the 4-hour time frame, expect a rapid drop to $1,000. A short-term relief rally to $1,420 could also be seen if the demand zone is respected.
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NEAR/USDT
In our previous analysis, we had anticipated NEAR to approach the support at $3.68. It was unable to sustain the support and tumbled to $3.40.
However, the strong downtrend does not seem to be ending anytime soon as the RSI has been continuously dropping. Traders should steer clear of NEAR until the supply zone at $4 is flipped.
SOL/USDT
SOL has been trading in a very tight range and has performed relatively well against the greater market. It also attempted to break the resistance but got rejected by the resistance. The resistance seems to have weakened, which is why a breakout could be seen in the coming weeks.
If the resistance at $34 is broken, expect a strong rally towards the next support zone at $39. However, if the lower range is broken, a sharp fall could be seen towards the next support level at $28.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks?
ADA/USDT
ADA is still trading close to the 52-week low. Therefore, traders must maintain caution.
If the coin is able to trade above $0.46, expect a strong rally towards the resistance at $0.54.
ADA broke very crucial support on Sunday, and a new 52-week low could be hit very soon. It would be advised for traders to steer clear of ADA at the moment as it is just 5% away from the 52-week low.
FTM/USDT
Until FTM is able to flip the resistance at $0.24, our view on FTM to avoid any long positions will remain the same.
FTM is also trading very close to the last standing support at $0.22. Therefore, a breakdown could be seen in the coming week. If a close below $0.22 is seen on the 4-hourly time frame, expect the price to plunge to $0.19
Also Read: What Is Crypto Options Trading?
Summary
A quick recap of all the coins:
- BTC has broken a crucial support level.
- ETH needs to reclaim the $1,420 price level.
- NEAR is in a strong downtrend.
- SOL needs to reclaim the resistance to rally.
- ADA could soon hit a new 52-W low.
- FTM is approaching a crucial support level.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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