It was another chaotic weekend for the crypto markets. While football fans watched the Manchester United and Liverpool game, the crypto markets suffered a massive crash that wiped over $ 15 billion in market cap. In other words, the crypto markets are back in the background to start the week with a big hole that needs to be filled.
The crypto market cap started the year at $ 126 billion and peaked at $ 143 on February 24, before falling back to $ 128 billion today. The main questions were what drove this move forward and whether the JPM coin has gone away.
Well the reality is that big moves in the crypto market over the weekend are not uncommon, largely due to the smaller volume and larger order sizes. Such a step does not shake the foundation of HODLER.
In fact, it is more of an opportunity for them, as long as there is no material divergence in fundamentals. If you look at the feeling, it only improves.
However, bull traps are certainly set by bears, and if you look at the price history for the crypto market over the past 24 hours, this seems like a trap. It appears that the price was driven by algae and bulls fell victim to it. But for me that may not be true, there is more to it than that.
From a technical point of view, all three top crypto coins (Bitcoin, Ethereum and Ripple) have returned to their previous ugly price range. For Ripple’s XRP tokens, the critical value is $ 0.30. It has to stay above this point to convince traders that the bull run has strength . Likewise, the price of Ethereum has to stay above last week’s low at USD 125. For Bitcoin, the critical number is the February 18 low of $ 3,565.
The daily chart for Bitcoin clearly shows that the price is above the 50-day moving average, but still well below the 100-day and 200-day moving averages. This confirms that the bulls are still in control of price. As long as it stays above the 50-day moving averages, there is hope that Bitcoin price will continue to rise.
Source: ThinkMarkets, Bloomberg, Twitter: @ NaeemAslam23
The bottom line is that the current sell-off can only appear as an opportunity if the previous lows are not breached. Breaking the previous lows would confirm that the recent bounce in the Cyrptmarket was a trap, but at the same time it’s also important to remember that sentiment in the market has changed – the change is for better price action.