The crypto market is licking its wounds following the latest dump.
However, while a 23% drop from Bitcoin and 33% from Ethereum might look bearish, they’re actually perfectly healthy bull market corrections.
We’ve also seen this exact price action before.
In this issue of Cryptocademy, we’ll take a look at where cryptos have been in recent months to try to figure out where they may be headed.
Let’s get it!
Bitcoin is currently trading near $50,000 after Tuesday’s bounce from a multi-week low of $45,000.
While I do think a bottom is near, I don’t think BTCUSDT rallies from here without another drop first.
For that, I’m looking to the $47,000 support area.
A bounce from $47,000 could take BTCUSDT back to $51,000 and perhaps $55,000.
Altcoin Market Cap
I tweeted this chart a few days ago right before the crypto market tanked.
The fact that the altcoin market cap was trading at channel resistance and hadn’t yet retested its previous all-time high at $470B
24 hours later, the market tanked.
While I can’t be certain this channel will always hold, I do think this week’s retest of $470B is significant.
I also think that area holds as support. In other words, the bottom for alts is likely in.
ETH has rebounded nicely following this week’s selloff, but appears to have a bit more downside before a true bottom is in place.
I’m keeping a close eye on the $1,560 support area.
However, I’m not ruling out another run at $1,500 before we see ETH climb back above $1,600 and $1,700.
A drop to the $1,500 area before bottoming would match what we saw last month when ETHUSDT dropped 32%.
LINK is still trading within an ascending channel.
We saw the market bounce from support during the recent selloff, and I do expect that area to hold going forward.
That said, I want to buy lower.
If this first bounce fails, which it looks like it’s going to, I’d keep a very close eye on the area just above $24.
But like everything else, it’s going to depend on whether or not BTCUSDT settles at $47,000 like I think it will.
If it does, then LINK should hold above $24.
Key resistance is $28.50 and $33.40.
VET (VeChain) bounced perfectly from a previous multi-year trend line.
I’ve discussed this 2018 trend line at length on Twitter.
It’s the technical reason VET had such a hard time climbing above the 0.035 area a few weeks ago.
Now that it’s above it we’d expect that area to serve as support, which is exactly what occurred this week.
Similar to other cryptos, I do expect this first bounce to fail.
However, the 0.037 to 0.04 area should serve as significant support.
That’s the area I think will catapult VET back above 0.045 over the coming week.
ETHBTC recently broke out of a multi-year triangle.
The market may have pulled back more than most expected, but the weekly time frame is still holding above new support near 0.033.
If ETHBTC closes above 0.033 this week, it means ETH is still on track to outperform BTC this year.