After failing to hold above the 100-week price average last week near $36,000, Bitcoin has now fallen an additional -15% from last weeks close and is currently trading at $29,200. Bitcoin is now nearly -60% off of its 2021 high of $69,000 and is seeing additional downside pressure this week due to the issues surrounding Luna and UST which is generating fear and panic selling in the broader crypto market. There is also pressure on risk assets due to the Federal Reserve raising interest rates last week by .5% with plans to raise another .5% in June. Higher interest rates tend to lead to risk off in speculate assets such as crypto.
Bitcoin is currently trading between the 100 and 200-week price averages and judging by the recent price trend and historical chart data, price is likely going to head lower and test the 200-week price average down near the $20,000 level which is also the price peak level seen during the 2017 crypto bubble. A capitulation dip to $20k and a bounce would be healthy, a pause at $20k would be neutral, a dip and sustained move below $20k would likely lead to a new crypto winter.
The first lower indicator below the price chart is the PPO and it is reading bearish. The green PPO line trending below the purple signal line, and both lines being below the horizontal 0 level indicate bearish momentum behind price.
The next indicator is the ADX and it is also reading bearish. The purple DI rising above the green DI line indicates a short-term bearish trend behind price.
The bottom indicator is also reading bearish. The green RSI line trending below the 40 level indicates bearish momentum behind price. The green line crossing below the lower, purple Bollinger Band indicates extreme bearish volatility.
Overall, Bitcoin and the crypto market in general remain bearish on both the technical and sentiment sides of the spectrum. We may see some relief bounces here and there, but the longer price remains below $30k the more likely it is to head lower in the short to intermediate terms. That can be good or bad depending on your strategy. If you spent all of your cash at higher prices, the dips are no fun. If you are a long-term holder then the dips are good buying opportunities to lower your average, or to open trades in new cryptos.
Bitcoin falling below $30k was my signal to begin accumulating crypto again which I kicked off today with entries into Cardano(ADA), Algorand(ALGO), Stellar Lumens(XLM), Decentraland(MANA) and Filecoin(FIL). Their charts looked to be near or at technical support levels if the market decides to turn around here which would help solidify their bases, but I am fine with them going lower as well which would give me the opportunity to accumulate more at lower prices. My hope is that we are in a 1-3 year crypto bear market which would be ample time to build large positions in cryptocurrencies ahead of the next bubble.
Bitcoin is currently trading between the 100 and 200-week price averages and judging by the recent price trend and historical chart data, price is likely going to head lower and test the 200-week price average down near the $20,000 level which is also the price peak level seen during the 2017 crypto bubble. A capitulation dip to $20k and a bounce would be healthy, a pause at $20k would be neutral, a dip and sustained move below $20k would likely lead to a new crypto winter.
The first lower indicator below the price chart is the PPO and it is reading bearish. The green PPO line trending below the purple signal line, and both lines being below the horizontal 0 level indicate bearish momentum behind price.
The next indicator is the ADX and it is also reading bearish. The purple DI rising above the green DI line indicates a short-term bearish trend behind price.
The bottom indicator is also reading bearish. The green RSI line trending below the 40 level indicates bearish momentum behind price. The green line crossing below the lower, purple Bollinger Band indicates extreme bearish volatility.
Overall, Bitcoin and the crypto market in general remain bearish on both the technical and sentiment sides of the spectrum. We may see some relief bounces here and there, but the longer price remains below $30k the more likely it is to head lower in the short to intermediate terms. That can be good or bad depending on your strategy. If you spent all of your cash at higher prices, the dips are no fun. If you are a long-term holder then the dips are good buying opportunities to lower your average, or to open trades in new cryptos.
Bitcoin falling below $30k was my signal to begin accumulating crypto again which I kicked off today with entries into Cardano(ADA), Algorand(ALGO), Stellar Lumens(XLM), Decentraland(MANA) and Filecoin(FIL). Their charts looked to be near or at technical support levels if the market decides to turn around here which would help solidify their bases, but I am fine with them going lower as well which would give me the opportunity to accumulate more at lower prices. My hope is that we are in a 1-3 year crypto bear market which would be ample time to build large positions in cryptocurrencies ahead of the next bubble.