The latest technical analysis anticipates even steeper falls in bitcoin and ether, following last week’s turmoil.
This Wednesday morning, bitcoin is below the 30,000 dollar mark, down 2% over 24 hours. For its part, ether also fell by 2% and stabilized around 2000 dollars. The monero and litecoin cryptocurrencies are holding up a little better, but the sentiment is rather negative.
In recent weeks, there has been a form of correlation between the major cryptocurrencies and the Nasdaq, this seems less true in the short term. The Nasdaq recovered well on Tuesday with an increase of almost 3%. This is not what has supported cryptocurrencies and there is no additional catalyst there. The market always gives this feeling of being on edge, with a real risk of stalling.
Indeed, while the cryptocurrency market experienced strong turbulence last week, the latest technical analyzes on bitcoin and ether give particularly gloomy forecasts.
Of course, we have to put things into perspective: we are only talking about purely technical analysis, not at all about the fundamentals and the very technical nature of bitcoin and ether, but it is clear that the rag last week caused major long-term weaknesses.
Relapses of bitcoin and ether?
In fact, we know the market analysts: the more violent the slack has been, the more we foresee scenarios that will be even more violent. For example, Ether has lost 60% of its value since its last highs. The technical analysis of the research firm 22v does not exclude a further relapse of 80% in the long term, to 420 dollars in target.
For his part, the graphic analyst John Roque believes that the signals are worrying: day-to-day and weekly oversold situation, marked weakness in an attempt to overshoot the 2000 dollars in a decisive way… We should therefore remain cautious on the ether according to him.
The same goes for bitcoin: Fairlead chart analyst Katie Stockton predicts a 40% relapse from current levels if bitcoin fails to rebound significantly off the key $27,000 level.
Again, this is all just pure graphical analysis, mathematical projections, but it tends to work on major cryptocurrencies. Notammnt because the major players in traditional finance use it and program their algorithms on it to make their decision.
In the end, we are probably not done with volatility in the next few days if once again bitcoin and ether fail to hold their supports better than they are doing at the moment.