The broader crypto market got hammered Tuesday in a short sharp sell-off before a slight recovery on Wednesday.
We’ve seen this type of price action and I am growing increasingly bearish on the entire sector by the minute.
Bitcoin shed around 10% of its value but is now back above the key $50,000 level. Technically, when we see a break of a big level on volume, that suggests there might be more to come.
We’ve also started hearing talk from Reserve Banks about their worry’s about Bitcoin. So far it’s been India and the US. Is this a warning for what might be in store?
I am certainly expecting to see more selling across the board. While I am bullish on a couple of cryptos, they will likely be dragged down in the short term thanks mostly to BTC.
Looking at the key levels that Bitcoin needs to try and hold and we can see that $45,500 is where price got bought up on a couple of occasions. I will be watching that level like a hawk as clearly if it drops, then we will see another big dump. $50,000 will also need to hold as resistance now. It might pop higher, but longer-term I remain very bearish now.
To the downside, I suspect we will then be looking at hitting those round number levels. Both $40,000 and $30,000 are important and I strongly suspect a test of both sooner rather than later.
ETH was another that got smashed very badly and I am watching the $1400 level there very closely. If it drops then it will likely fall very quickly.
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