- Bitcoin and major altcoins crashed to new lows.
- Ethereum is vulnerable to further losses amid massive sell-off.
- Ripple is the best from the worst.
The bearish trend on the cryptocurrency market is gathering speed as the collapse below vital support levels increased pessimistic sentiments in the market and squeezed out weak longs.
What’s going on on the market
It seems that apocalyptical forecasts start to roll out. Peter Schiff recently noted that bitcoin created an ominous head-and-shoulder pattern that may result in an epic collapse to $1,000. While these expectations of an old bitcoin critic may be overstretched, the downside momentum looks scary.
From the fundamental point of view, the decision of PBOC Shanghai Head office to strengthen regulation and control over the cryptocurrency industry might have served as a trigger that brought bitcoin and all major altcoins to multi-month lows.
BTC/USD, the technical picture
At the time of writing, BTC/USD is moving fast towards $7,000. This psychological barrier may hold the bears back for the time being. Though once it is out of the way, the bottom will fall out and the price may collapse to as low as $5,000. This barrier is created by SMA200 (Simple Moving Average) weekly. On the upside, we will need to see a recovery above at least $7,550 (the neckline of the above-mentioned head-and-shoulder pattern coupled with SMA100 weekly.
Considering the downward-looking RSI (Relative Strength Index) both on a daily and a weekly chart, the bearish scenario looks highly likely at this stage.
BTC/USD, the weekly chart
ETH/USD, the technical picture
ETH/USD broke below $150.00 handle and hit the intraday low of $145.50, which is also the lowest level since March 2019. Ethereum moves in sync with bitcoin, which means the coin may be in for further decline towards $130.00. The price created a large red candle after a long series of dodgy candles. An extended period of consolidation…