The #1 cryptocurrency of the world has plunged more than 50% in the last 2 months. Bitcoin is consolidating between 30K – 40K for more than a month now. Bitcoin had some huge wicks down to 28K level recently, and many bears still say that bitcoin can go down at least to 24K range soon. Bitcoin has strong support in the 30K range. If it’s broken, it’s a big warning sign for the whole crypto market.
All most all the cryptocurrencies are following the market structure of bitcoin. If bitcoin dives whole market will be dragged down with it. 2 months ago, bitcoin had more than $1.2 trillion market cap, and now it’s down to $611 Billion. Many people that came into the market because of the hype are already out of the market. In the last 24Hrs, bitcoin went down -6.18%.
There is so much FUD circulating in the crypto market. Binance is getting many restrictions from countries, and Binance has already stopped SEPA and UK bank deposits. Bitcoin started to be boring to everyone right now. Many YouTubers are calling this a mid-bull market correction. But to keep the momentum going, bitcoin shouldn’t close a daily candle down from the 30K range. It’s a matter of time right now. Bitcoin has a huge overhead resistance from the 36K range and then the 42K range. So bitcoin should go past the 45K range to flip bullish.
Some say bitcoin will dump more because of Greyscale bitcoin fund expires on mid this month. So people are expecting the 24K range. But by experience, we know if many are looking for that target, it will never happen. So keeping some stable coins ready is always a good option these days. Never spend everything at the same price point. Dollar-cost averaging is the best way to accumulate more bitcoins.
Going into Altcoins other than the top 10 is highly risky right now. But Dogecoin is also something you should be more aware of because it can lose 90% of its value because of the lack of hype. If you’re already invested in small-cap altcoins for the long run, be cautious and only invest a small portion of your portfolio. These are not financial advice, and these for educational purposes only.
SEPA and UK Banks
I’m not trying to secure your money as your banks do recently. Barclays and Santander have already stopped bank transfers to Binance, saying they are trying to safeguard your money. But as adults, we know what we are doing, right? These are just taking actions before bitcoin, and other cryptocurrencies replace countries’ governments and their banks. We should be the ones that should have all the rights to our hard-earned money. Selling your bitcoins for some warning signs is like selling diamonds for some graphites to build a house.
Bitcoin Chart Warning Signs
Let’s talk about the Bitcoin chart, shall we? We all know that all the altcoins tend to take the path of bitcoin, so taking a look at bitcoin is enough to get an idea about the whole market trend. Bitcoin has just printed a shooting star on the 6 month time interval. The shooting star is a trend reversal pattern. So if this plays out, bitcoin could go down to as low as 14K in the next 12 months. Also, we have breached a key level on the 6 month RSI, indicating a bear market and about 13K level these are some warning signs for the whole crypto market. So I think it’s better to be more level-headed at this point because If bitcoin holds the 30K level, we will see the biggest bitcoin rally of its 12 year time period.
So be prepared and only invest the money you’re willing to lose.