The need for decentralization and transparency has become clear to crypto traders as the LUNA domino effect continues to shake cryptocurrency markets, leaving fundamentally strong protocols in the wake to pick up the pieces.
You may have noticed a few fund managers (Michael Saylor and Cathie Wood to be precise) not seeming too worried about the crypto crash's effects on Bitcoin’s long-term outlook. They are long Bitcoin, and if you decide to buy the dip and go long yourself, do it the smart way with Quadency’s Smart Order. You can automate your long and short orders with trailing or fixed stop-loss and take profit levels.
Despite a substantial dose of quantitative tightening handed out by the FED on Wednesday, Bitcoin decoupled from the Nasdaq and moved in a positive direction on Thursday after a 7-day 35% price drop.
Seasoned Bitcoiners who have experienced multiple bear markets are keeping their diamond hands steady and waiting for LUNA contagion to shake out undercollateralized and overleveraged entities that are falling like dominos.
So we took a zoomed out view on the 2-hour BTC chart using the Fibonacci retracement. Then we set a downward trend starting June 7th at $31.1k. We drew the bottom of the retracement to June 15th - after that RSI hit a new monthly low of 9 on the 14th. The chart showed only a slight struggle to break the first two lines of support at $29k (0.786) and $27.1k (0.618).
Then the free fall commenced and we saw RSI on a wild ride down. Only after the price made its crash landing with a few bounces on the 15th of June did we see the RSI between the 30 and 50 range. If it stays in that range, the price might as well be stuck between the support and resistance levels at 20,080 and 22,780, respectively. This potentially makes it a nice time to scalp as the bulls and bears go at it in this price range.
On the 1-week chart for Bitcoin, if we zoom out on the macro trend, we could be flirting with the resistance and support area that Bitcoin has visited twice before: in December of 2017 (at the market top) and December of 2020 (Just before the bull run of 2021). This price range is 20k and 17.5k. Right now, they are acting as the bull's line of defense as these two price points are acting as support against the bear market. If the price cannot bounce off the 20k support band, expect our next macro support band to be 17.5k.
Ethereum set a record this week by falling below its January 2018 all-time-high, as altcoins continued to bleed and over 30 of crypto’s top 100 coins dropped by more than 30%.
The industry is in a cleansing phase right now between the LUNA and Celsius collapses and the many after effects we are seeing. It seems likely that only the most fundamentally strong protocols are going to survive, which in the end creates a stronger market, however painful the path.
The Orange line (0.0536) may represent a macro line in the sand for ETH/BTC This line was a point of resistance and support in 2017 throughout October and December. ETH/BTC bounced off it in April 2018 and had a 2-day battle to break through on August 11th, 2018. In May of 2021, ETH/BTC broke through the line and turned it into support line #2 between May and August of 2021. We could be seeing this line being challenged right now.
Turn TradingView alerts into executable signals with Quadency’s TradingView bot!
Despite a substantial dose of quantitative tightening handed out by the FED on Wednesday, Bitcoin decoupled from the Nasdaq and moved in a positive direction on Thursday after a 7-day 35% price drop.
Seasoned Bitcoiners who have experienced multiple bear markets are keeping their diamond hands steady and waiting for LUNA contagion to shake out undercollateralized and overleveraged entities that are falling like dominos.
So we took a zoomed out view on the 2-hour BTC chart using the Fibonacci retracement. Then we set a downward trend starting June 7th at $31.1k. We drew the bottom of the retracement to June 15th - after that RSI hit a new monthly low of 9 on the 14th. The chart showed only a slight struggle to break the first two lines of support at $29k (0.786) and $27.1k (0.618).
Then the free fall commenced and we saw RSI on a wild ride down. Only after the price made its crash landing with a few bounces on the 15th of June did we see the RSI between the 30 and 50 range. If it stays in that range, the price might as well be stuck between the support and resistance levels at 20,080 and 22,780, respectively. This potentially makes it a nice time to scalp as the bulls and bears go at it in this price range.
On the 1-week chart for Bitcoin, if we zoom out on the macro trend, we could be flirting with the resistance and support area that Bitcoin has visited twice before: in December of 2017 (at the market top) and December of 2020 (Just before the bull run of 2021). This price range is 20k and 17.5k. Right now, they are acting as the bull's line of defense as these two price points are acting as support against the bear market. If the price cannot bounce off the 20k support band, expect our next macro support band to be 17.5k.
Ethereum set a record this week by falling below its January 2018 all-time-high, as altcoins continued to bleed and over 30 of crypto’s top 100 coins dropped by more than 30%.
The industry is in a cleansing phase right now between the LUNA and Celsius collapses and the many after effects we are seeing. It seems likely that only the most fundamentally strong protocols are going to survive, which in the end creates a stronger market, however painful the path.
The Orange line (0.0536) may represent a macro line in the sand for ETH/BTC This line was a point of resistance and support in 2017 throughout October and December. ETH/BTC bounced off it in April 2018 and had a 2-day battle to break through on August 11th, 2018. In May of 2021, ETH/BTC broke through the line and turned it into support line #2 between May and August of 2021. We could be seeing this line being challenged right now.
Turn TradingView alerts into executable signals with Quadency’s TradingView bot!
BNB is the platform token for Layer-1 BNB Chain (formerly Binance Smart Chain) and the larger Binance ecosystem. As a utility token, it enables reduced trading fees on Binance Exchange, and allows traders to participate in token sales launched from BNB Chain blockchain.
Be sure to join us on Telegram, Discord and Twitter!
—
Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.
Manage all your crypto assets on the go with zero-gas swaps and a unified portfolio at your fingertips.
Disclaimer: Information contained herein should not be construed as investment advice, or investment recommendation, or an order of, or solicitation for, any transactions in financial instruments; We make no warranty or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose. Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation to buy, sell or hold a particular financial instrument; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Quad Terminal, or vice versa. Market information is made available to you only as a service, and we do not endorse or approve it.
Copyright © Quad Terminal
