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:

ETH/USD (Daily)

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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