The crypto market is a sea of red today as Bitcoin and most altcoins undergo their second correction since February.
But we’ve prepped for this scenario.
I’ve been tweeting about several pullback scenarios over the last week, not to mention my first cautionary tweet on March 15th.
I’m also not sure this is a second correction as much as it is one significant pullback.
In today’s newsletter, we’ll take a look at how low the market could go and by when.
I’ll also share my exact plan for BTC, ETH, and VET over the next seven days.
Let’s get it!
Crypto Market Cap
The crypto market cap is once again in the red after carving a marginally higher high earlier this month.
However, this isn’t as alarming as it may seem at first glance.
In my opinion, the crypto market cap chart is simply heading back to the $1.3T support area, which could carve a double bottom.
That said, I think we’ll see more weakness through Friday’s session and then a weekend bounce as Friday’s expirations trail off.
We could then see a bit more weakness between Sunday/Monday through Wednesday to finish the month.
I think we then see green shoots on April 1st, followed by a healthy recovery.
Of course, this is open to interpretation and could change.
Nobody knows where a market is going, and I’m no exception.
Bitcoin flashed warning signs on March 15th when it closed back below $58,000.
I tweeted about this and discussed it in last week’s newsletter.
Although the market held up better than expected, buyers finally folded on Wednesday.
The BTCUSDT close below $53,000 suggests more weakness ahead, perhaps toward the $47,000 support area.
Like the market cap chart above, my guess is we see $47,000 by Friday, followed by a weekend bounce, followed by more weakness through March 31st.
I wouldn’t be surprised to see BTC bottom near $42,000 before buyers are ready to step in again.
We should then see the entire market recover in April.
As I mentioned in last week’s newsletter, I think there’s a decent chance we see a $1,200 ETH by the end of March.
There are no guarantees of that, but there is a ton of confluence at $1,200.
And as bad as a $1,200 Ethereum may sound, let me remind you that ETH was $135 on this day last year.
Going from $135 to $1,200 in 12 months is hardly an underperformance.
For now, ETHUSDT is catching a bid at $1,570, which I mentioned yesterday on Twitter.
A daily close below $1,570 would open the door to $1,400 with a close below that exposing the confluence of support at $1,200.
Dips are buying opportunities, in my opinion.
VETUSDT is arguably the most predictable crypto right now.
I posted this chart on Twitter a few days ago, and so far, it’s played out perfectly.
Will we get a retest of $0.06 support?
It looks that way, but there are no guarantees.
That said, $0.06 was VET’s previous range top from February.
It’s also the intersection of a trend line from the December lows.
And lastly, the 61.8% Fibonacci level of the latest rally comes in at $0.06 on the dot.
VET has pulled back to the 61.8% retracement since the late December/early January rally, so there’s a good reason to believe it happens again.
And if history is any guide, a retest and bounce at $0.06 should trigger a move to the $0.15 – $0.17 area in April.
Time will tell.