The crypto market is going down once again, but the downtrend is wilder in altcoins. Though Bitcoin and Ethereum have the narrative that the spot ETFs will be bought by millions of people and this reason can push the price higher organically, the altcoins have no such privilege to resist.
As an inevitable consequence of a harsh crypto correction, they have lost all the value they gained since the beginning of the year. The global factors play an active role on the current valuation. As long as the interest rate cuts do not take place, there might be no full - recovery for many of the coins.
Interestingly, crypto market is the only one that lost value today. The fear of Mt. Gox Dump might be the primary reason why the market cannot go up like the others did. Since the market has been in the same trend, several support levels have been tested several times and the decreasing hope of recovery started to show its side affects on the charts.
Important Support Level for Altcoins
If this level is broken, then the altcoins may go into a deeper consolidation phase until a solid narrative saves them.
This is one of the most important Fibonacci levels, 0.5 mid, which also gives insights into the trend in the market.
We have been hovering around this level but no violation has happened yet. Potentially, we can see a " short - term violation " followed by an instant recovery to force weak hands to give their coins at very low price levels.
Bitcoin hints at a similar type of weakness but these levels should not be broken. In case of a sudden drop, we may have lots of long positions got liquidated and turned into gas for short positions to grow.
If we lose these two support levels, $52K in Bitcoin and ATL for many altcoins would never be surprising. For those who have some stablecoins aside, there will be a huge opportunity to buy strong / promising low - cap coins at very low levels 🔥
What do you think about the current trend that altcoins are in?
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Posted Using InLeo Alpha