Bitcoin was less than 1% away from breaking a strong resistance on Tuesday when the inflation reports pointing to aggressive interest rate hikes led Bitcoin to tumble down by 10%.
The Nasdaq Composite Index fell by over 4% on Tuesday after fresh reports of inflation showed that the rate was not slowing down as Wall Street had expected. This resulted in a huge sell-off causing a significant fall for giants, such as AAPL and AMZN. The giants of the crypto market also faced the wrath of the selling forces after Bitcoin plummeted by 10% on Tuesday. Traders are advised to be cautious due to the extreme volatility that can be seen in the past few weeks.
In this week’s analysis, we will have a look at the coins which have performed relatively stronger than the overall market!
BTC/USDT
Bitcoin has been trapping traders from both ends of the zone as seen in the chart above. This is why traders must be very cautious and wait for a clear retest before taking any positions.
A bullish fakeout was seen at the support situated at $19,000, which helped the bulls take the price to $22,500. However, the bears were also quick to return as a fake breakdown was also seen shortly after Bitcoin broke the resistance. It shows that the bulls are clearly not strong enough to flip the resistance.
At the time of writing, Bitcoin was trading at its last standing support at $18,400. If a breakdown from this level is seen, expect the price to sharply drop to the 52-week low at $17,600.
Also Read: A Complete Guide to Death Cross and Golden Cross?
ETH/USDT
Ethereum has underperformed in the past few days as it nosedived by over 13% in just three days. Look like the downfall for Ethereum isn’t over and the Merge does not seem to be helping sustain the price at the moment.
After hitting a swing high of $2,000, Ethereum has been continuously falling and has been forming lower lows. It broke a crucial support at $1,420 on Sunday and has plummeted to the demand zone at $1,280.
It is very important for the coin to sustain over $1,280 as a clear path to $1,000 can be seen. If a close below $1,280 is seen on the 4-hour time frame, expect a rapid drop to $1,000. A short-term relief rally to $1420 could also be seen if the demand zone is respected.
NEAR/USDT
In our previous analysis, we had anticipated NEAR to rally towards the resistance at $4.75. Last week, the coin broke out from the resistance but was not able to sustain above the resistance.
NEAR has broken a very important support zone and can currently be seen retesting the breakdown zone. If this breakdown is successful, expect the price to approach the next support level at $3.68.
SOL/USDT
SOL is on the verge of breaking the final support before testing the 52W low.
If the support at $30 is broken, it won’t be long before the demand zone at $25 is tested. This is why traders should refrain from taking long positions in SOL as it has formed a very bearish structure.
SOL has not shown any signs of a reversal at the moment and a breakdown seems imminent.
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.
If the price falls below $0.42, traders should steer clear of ADA as it could head towards the 52-week low and possibly even set a new low!
FTM/USDT
In our previous analysis, we had advised traders to not take any long positions in FTM as it had shown no signs of a reversal.
Our position for FTM will remain the same this week as well as it formed yet another low and is now trading extremely close to the last standing support before the 52-week low.
Also Read: Scalping vs Swing Trading!
Summary
A quick recap of all the coins:
- BTC is approaching a crucial support level.
- ETH needs to reclaim the $1,660 price level.
- A bounce could be seen soon in NEAR.
- SOL needs to reclaim the resistance to rally.
- ADA could soon rally if it sustains the support.
- 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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