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The price of BTC could not find the momentum needed for another stage, and the bears took advantage of the situation and lowered the price of the BTC by 6.5%. Even the big Altcoin have followed a significant downtrend that has lowered prices by 15-20%.
It is always important to follow the BTCUSD VS BTCUSD Longs rankings (attachment bellow). Watching the long films / charts can help you understand the current market situation. We can see that the amount of open short positions fell to a very low level of 23,000 which acted as a support level (shown in the attached table), while the long open position chart rose in the sky to the level of resistance.
Whenever the table of open short / long positions reaches a critical value, it is a good sign that a big move will probably occur. The bulls are crushing the Bears or in our case the Bears are clearing the Bulls. There were too many long positions open for BTCUSD, and the bears simply slammed the price below the long-term damping area to close their position.
The free fall of BTC immediately hit all markets as the market leader.
Ethereum like all other big Altcoin reacted the same way with a 17% decline and currently trades at the $ 127 level.
In our previous analysis, we warned that if the bulls would not find the strength to break the resistance level of $ 160, then ETH risks retesting the support level of $ 146 or lower support of $ 131 – $ 124. And without any coincidence, ETH falls exactly to the $ 131 support level held there for a few hours and took another round to the $ 124 level.
So what's there now …?
Looking at the 4-hour ETH-USD chart (Bitstamp)
- ETH is currently supported by the $ 131- $ 124 support level and is likely to test lower levels of support as the sales volume is high. This level is also the retracement level of 0.5 Fibonacci. In case this level will not hold bears, the ETH will probably fall towards the support level of $ 114 which is the Fibonacci retracement level at 0.618. When and if we get to this level, ETH will probably bounce because 0.618 is a good point for bulls trying to recharge their long positions after such a free fall, for a quick exchange or even as an attempt to capsize. .
- In the event that the support level of $ 114 will not hold up against bears, the next target for decline could be found at the $ 100 level.
- On the other hand, if the bulls attempt to fight the ETH plot they could retest the $ 131 or $ 140 as resistance. This move could act as a bear flag move before another leg down or as part of a "launch base" model that we tend to see a lot in the cryptographic market, and some even call it " Bart ", since it looks like Bart The head of Simpson.
- The 4-hour RSI is in the oversold regions with a current value of 21, has drastically broken our drawn support trend line.
- Also, note that the price of Eth has exceeded the 200 EMA which now serves as a resistance level. And that the 55 EMA (yellow line) is moving towards the 200 EMA and could die crossing it very soon.
- This kind of free falls usually takes place when everyone is looking for the next move up. Because of the volume of this downward movement, the probability is that the ETH will test the lower support levels as described above.
BTCUSD shorts and Longs Charts (Bitfinex)
CryptoPotato video channel
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