A Brutal Week For Bitcoin (BTC), Cryptocurrencies

The last seven days have not been kind to the crypto space. Fueled by rumors and overall investor paranoia, the entire asset class has experienced a sell-off similar to those of early 2018. Will cryptocurrencies, led by Bitcoin (BTC), ever return to the form of late 2017?

Crypto Performance Metrics-Cash Market

A quick look at the cash market gives us a clear picture of how bad the last seven sessions have been for the leading cryptocurrencies:

Coin                                Percentage Loss        Key Psyche Numbers Eclipsed

Bitcoin (BTC)                        -16.5%                                 $7500, $7000

Bitcoin Cash (BCH)              -25.8%                                     $1000

Ethereum (ETH)                   -21.9%                                      $500

Litecoin (LTC)                       -21.6%                                      $100

There really isn’t a whole lot to say — these markets have plummeted. But, is there a potential buying opportunity on the horizon? With prices falling beneath the key numbers outlined above, one is inclined to believe we will see a return to these levels at some point.

At press time, values for BTC, BCH, ETH, and LTC are hovering near flat. A positive 24 hours may establish a short-term bottom and set the stage for a rally.

Bitcoin (BTC) Technicals

The daily chart for June Bitcoin futures gives us an idea of the trouble cryptos are currently experiencing.

Overview: After a failure at the key 38% retracement level ($7646), it has been all downhill for BTC. The GAP on Monday’s open illustrates the strife experienced on the cash markets over the weekend. Bearish sentiment has dominated BTC throughout 2018 and the bottom may not yet be upon us.

In my opinion, this market is likely to and base near the $5000 handle. It is an obvious big round number and one that crypto traders will be watching intently. A test of this level in the coming months may be the only way for BTC to establish a long-term bottom moving forward.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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