This morning we are seeing total cryptocurrency market capitalization sink down to as low as US$310 billion. Every single coin in the top 25 is currently down double-digit percentages and the pulse of the recent market action feels to me like a capitulative crescendo is building.
Turning to the chart of ETH/USD (which is similar to Bitcoin and a good representation of cryptos overall) we can see that there is MAJOR support/resistance down near the $500 level:
We can also see the last three major drops in Ethereum all resulted in high volume daily bars and powerful upside reversals. The current decline has been more orderly and of a 'grinding' nature, however, I could envision a short-lived break below $500 creating panic and in turn a tremendous buying opportunity.
The snapback rally from the next low should see at least a 50%-100% rally; resistance levels of note are at: $680, $700, then a much more important longer term area of support/resistance near $730-$750 (a daily close above $750 would be highly significant).
On another note some 'timing' models that I monitor show the current bearish crypto cycle coming to a close by the end of this week, which could mean today OR as late as Sunday. This is definitely something to keep a close eye on. For all of you "no-coiners" this could be a great opportunity to pick up a little bit of crypto exposure on the cheap with excellent potential reward available vs. relatively low risk.
And this article caught my attention this morning ~~~> Bitcoin Is Worthless, Bubble May Pop Soon, Allianz Global Says.... What are things bottoms are made of for $2,000 Alex?
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