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?
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.
