- The market crash can be read as a last stand before the bull run.
- Market sentiment collapses and shifts in a day from greed to fear.
- The downward movement could continue until the end of this month.
Yesterday's day left us with significant drops along with the crypto board and a radical change in the traders' perception of the situation.
The market sentiment level prepared by the website alternative.me has collapsed and fell more than 40% to level 40.
The current level indicates that there is fear among the participants, a step before doubt, and that will eventually develop into capitulation.
The strong hands that dominate the crypto market have decided – in fact, they had already made their mind for days – that it is time to buy again and of course they are not going to do it with the rising prices.
The congestion we see in the long-term chart of the sentiment indicator already announced a collapse, according to their typical behavior pattern. In previous situations, this type of collapse in the sentiment level has reached extreme levels of fear (0-20). However, there are no records before February 2018, and we have no references of how it can behave during a bullish market.
The objective for the next sessions is to know where the weak hands will sell, and the strong hands will satisfy their needs, maybe the last opportunity to buy at "reasonable" prices in the next few years, so be on the lookout for opportunities.
ETH/BTC Daily Chart
ETH/BTC is currently trading at 0.03752 and has not lost primary support at 0.03748. The closest area of congestion is around 0.034, and if the drop extends, it is where the ETH/BTC pair should move.
Above the current price, the first resistance level is at 0.040, then the second at 0.042 and the third one at 0.045.
Below the current price, the first support level is at 0.0226, then the second at 0.022 and the third one at 0.0217.
The MACD on the daily chart has lost the bullish profile and stands entirely horizontally. The current structure does not suggest a fall and leaves a very uncertain scenario for the next few days.
The DMI on the daily chart shows the bulls drilling down the ADX line and disabling the bullish pattern. The bears are rising a bit although they are still far away from the buy-side positions.
BTC/USD Daily Chart
The BTC/USD pair is currently trading at the price level of $10270. Below the current price, there is a significant area of price congestion support and the 200-day simple moving average as the ultimate safety support at the price level of $9000.
Above the current price, the first resistance level is at $10370, then the second at $12840 and the third one at $13650.
Below the current price, the first support level is at $10200, then the second at $9500 and the third one at $9000.
The MACD on the daily chart is moving violently down and into the negative zone of the indicator. The current structure would allow a violent rebound to the upside, although the market environment is not the most appropriate.
The DMI on the daily chart shows the bears taking control of the pair with force, distancing themselves from the bulls and promising an extended period of dominance.
ETH/USD Daily Chart
The ETH/USD pair is currently trading at $387.6, above the primary support of the current price range. The trend line that was born from the March lows – the natural support – passes through the $290 price level, but is projected to reach the $320 level by the end of this month. After many months of consecutive upward movement, we cannot rule out a three-week consolidation and a move into that price range.
Above the current price, the first resistance level is at $208, then the second at $218 and the third one at $225.
Below the current price, the first support level is at $200, then the second at $195 and the third one at $190.
The MACD on the daily chart is crossing downwards and does so with a significant slope, which increases the chances of a prolonged fall.
The DMI on the daily chart shows the bulls losing support from the ADX line but still holding above the bears, the last hope of avoiding lower prices in the short term.
XRP/USD Daily Chart
The XRP/USD pair is currently trading at the price level of $0.2509, and after yesterday's decline, the price is now resting on the accelerated trend line from the start of the upward movement last July. If it breaks this downward trend line, the next line in the sand, originating from the March lows is at the $0.23 level.
Above the current price, the first resistance level is at $0.2618, then the second at $0.2846 and the third one at $0.31.
Below the current price, the first support level is at $0.244, then the second at $0.235 and the third one at $0.224.
The MACD on the daily chart shows how the indicator penetrates the negative zone of the indicator, although the current profile still allows for an upward swing that will allow the XRP/USD to remain on the upside.
The DMI on the daily chart shows the bears taking control of the pair although without the exaggeration we see today in the Bitcoin. The bulls are resisting the loss of control well and are holding at levels that would allow them to turn the situation around.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.