Bitcoin continues to fall after the Powell speech on Friday. Are there any signs of a reversal? Let’s find out!
Wall Street stumbled significantly after Jay Powell‘s speech on Friday. The Dow Jones Industrial Average took a heavy hit and fell by almost 3% right after the speech. The fall mainly came because of the mention of “some pain” due to the rising inflation
. The crypto market also followed the greater market sentiment and resulted in Bitcoin tumbling by over 6%. In this week’s technical analysis
, we will analyze charts to see if there will be a continuation in the selling pressure.
In last week’s analysis, it was observed that Bitcoin was trading in a tight zone which has since been broken and has resulted in the price barely sustaining over $20,000!
Amidst the high selling pressure, Bitcoin broke down on Friday and just about sustained over $20,000. Traders must be very cautious at the moment with a death cross
forming earlier last week in the 4h time frame, signaling a short-term downtrend.
The support at $19,250 is a very crucial level for bulls to hold. If a close below $19,250 is seen on the 4-hourly time frame, expect the price to approach the $18,000 zone. The bulls need to reclaim the resistance at $22,500 to expect any potential upside.
Also Read: A Complete Guide to Death Cross and Golden Cross?
In last week's analysis, we had anticipated a fakeout and that is exactly what we saw!
After failing to break above the resistance at $1,670, Ethereum briefly fell by over 15% to $1,420. It is looking like Ethereum is going to test the resistance once again this week; however, a breakout is not expected without support from the greater market.
If a breakout is seen, traders should see the price approach $1,800 soon. If the low of $1,420 is taken out, the bears
would be in complete control of the downtrend.
After a bullish fakeout, it looks like NEAR will now retest the support before continuing the rally towards the resistance at $4.75.
The coin has formed a round bottom, and it has strongly outperformed the market last week. Traders should maintain a bullish bias on NEAR this week and expect the rally to continue.
It is too early to say if the rally will continue past $4.75 as it mostly depends on the buying volume now.
In last week’s analysis, we had anticipated that a breakdown would be seen from the support at $34. After the deep selling pressure that was seen on Friday, SOL
fell by over 10% which resulted in the price hitting our area of interest at $29.
It is very important for the price to climb back up above $34.42 as failure to do so could end with the price plummeting to the last standing demand zone at $27.
Once a close below $27 is seen on the 4-hour chart, traders should expect a deep sell-off towards the 52-week low
Last week, ADA was right above the last support before the 52-week low, which is why we had advised investors to steer clear of ADA at the time. This support was briefly broken last week, however, the bulls were able to recapture the resistance after forming a double bottom.
Traders should avoid taking any long positions
at the moment as ADA is trading very close to a crucial support level.
FTM has broken the last standing support at $0.29 and is not showing any signs of reversal.
It seems like FTM may start its descent to $0.24 soon. Therefore, traders should not take any long positions until the supply zone at $0.29 is flipped once again.
You may also check out our guide to scalping vs swing trading
A quick recap of all the coins:
- BTC is approaching a crucial support level.
- ETH needs to reclaim the $1,670 price level.
- A retest should be seen in NEAR.
- SOL is trading dangerously close to the support level.
- If ADA breaks the support, a new 52-week low can be set.
- FTM has broken crucial support.
Remember that this is all based on the subjective views of the writer. As always, DYOR
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