After a painful couple of days, during the last 48 hours we have seen even further drop and more pain in crypto. The good news is that we have approached an area that is demanded for accumulation in the long run.
With around 8% weekly fall down for Bitcoin people start to wonder where the next support will be found. Is it possible that we have reached a major bottom for the crypto market? Let’s see what the charts have to say.
BITCOIN
BTC fell over 5% in the last 2 days. That marks a significant downfall for the week and other currencies took a hit too. After bulls not being able to withstand the price, BTC reached levels of $25 800, which we lastly saw on March 18th.
The price has fallen to a critical zone, where the Weekly 200MA is located – $26 000. If the price today closes below $26 000, the next major support is between $25 200 – $24 800. Currently, the price has made a wick down below the Weekly 200MA but will be looking forward to seeing BTC support it and close above.
Massive selling pressure caused the price to go down through the last buying orders that were valid. That means that in a scenario where BTC goes up the first resistance is a minor one – $27 100 – $27 700. The chart on BTC has been updated because after the drop down selling orders have appeared above the price.
It is definitely worth pointing out that the selling orders looming above $29 700 have not moved and that is alarming. In order to see market makers flip long we have to see these selling orders move higher or get out of the market. During the whole move down we have not seen a major transition in the selling orders. That of course will have to change, so will be keeping a close eye on it to identify the bottom of this drop.
These drops are healthy for the market, as up only moves will cause fear of missing out (FOMO) and will trap most buyers. It will be vital for BTC to support from the current level to continue bullish momentum in the long run.
SOLANA
SOL has touched the area where bulls have been defending the price. Unlike BTC, the price of SOL has not executed the last major buying orders. This shows that the currency has a particular strength compared to other coins.
The price is still in a support are and a preferable place for accumulation in the long run. The next Minor Resistance has shifted to $20.90 – $21.30. Will be expecting a pump from current level to higher prices.
In order to see positive momentum the price has to close above $19.66, as this price marks an area of crucial support zone.
