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Crypto Crash: Key Levels For Bitcoin (BTC), Tron (TRX)

Posted Wednesday, May 19, 2021 by
Shain Vernier • 2 min read

It has been a catastrophic 24-hours for crypto bulls, as the entire asset class has shed hundreds of billions in market cap. A few of the more notable losses may be found in Bitcoin BTC (-13.2%), Ethereum ETH (-21%), Litecoin LTC (-33%), and Tron (-29.9%). Also, Polkadot (-31.86%) and Dogecoin (-21.48%) are trading at multi-month lows. Given the bearish action, one has to wonder ― is it time to buy the dip or be patient?

In a Live Market Update from yesterday, I talked about the shaky nature of the past week’s crypto markets. This assessment turned out to be accurate as a bit of regulatory news out of China brought massive selling to cryptos. During the U.S. overnight, Reuters reported that China has reiterated its ban on financial institutions and payment companies from facilitating cryptocurrency transactions. The move was lauded as a “crypto ban” and prompted many traders to liquidate their positions. 

As always, any news of regulation sends shockwaves through the cryptosphere. For Bitcoin and Tron, the damage of the past 24-hours has been significant.

Tron Plunges Beneath $0.10

Tron (TRX/USD) has taken the news out of China on the chin, plummeting beneath the $0.10 handle. In a Live Market Update from Monday, I outlined a long scalp for TRX from $0.1050. The trade fell victim to the crypto crash, producing a tight 10% loss. Ultimately, the stop loss at $0.0950 proved effective as prices fell all the way to $0.0500.

TRX/USD

Moving forward, the key levels to watch in Tron are $0.05 and $0.10. Although these are obvious big-round-numbers, they have gained added importance during the extreme volatility of the past day.

Key Support Levels For Bitcoin (BTC)

Bitcoin has been the biggest story in finance for the past week. Values are down 34% in seven days, with prices back below $40,000.

tron
BTC/USD, Monthly Chart

The macro view of the BTC/USD gives us a few key support levels to watch:

  • Support(1): Macro 50% Retracement, 34,372
  • Support(2): Monthly SMA, 34,025
  • Support(3): Macro 62% Retracement, 27,169

Trade Idea: Like Tron, Bitcoin has surrendered huge market share in May. Now long-term support levels are coming into view. If the damage gets worse for BTC, I’ll have buy orders queued up from $27,500. With an initial stop loss at $19,500, this long position trade produces 29% ($8000) on a standard 1:1 risk vs reward ratio.

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