Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Things are Still Not Looking Good For Crypto
The crypto market’s signs are still pointing downward. Bitcoin’s price remains below the 100-day and 200-day moving averages (MA), and the 20-day and 50-day MAs are also about to cross below these critical zones.
The MACD indicator is in the red zone, indicating negative market momentum, and there’s no significant change in the RSI, suggesting that rough times could persist.
Previous support levels at $56,000 to $58,000 could now serve as resistance levels for the current price. Bitcoin must revisit the $48,000 to $50,000 levels to establish a substantial support area.
Additionally, US stocks are all red if you examine the general market sentiment. Although crypto and stocks are not directly related, they share the same market sentiment characterized by emotion, fear, and panic. If people continue to panic and sell off their stocks, this fear could spread to crypto investors. The looming fear of a market recession might keep investors on edge.
Final Thoughts
In summary, the crypto market faces significant challenges, with technical indicators and market sentiment pointing towards potential further declines. Bitcoin may need to find stronger support levels to stabilize, and the overall panic in the market could exacerbate these issues. Investors should brace themselves for a possible second wave of the crypto market crash and remain vigilant in these turbulent times.
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