While investors and traders are probably fleeing the market, scared by Fed Chair Jerome Powell’s hawkish speech on Wednesday, and the ensuing price dump across all markets, it may be that the bears could be feeling the first stages of exhaustion. Is the time for a market recovery approaching?
Traders need to take advantage of volatility
First of all, it must be acknowledged that markets are markets, and the best laid plans can be wiped out at a whim. This is why those who are the most successful in the markets are generally very long term investors. As long as you have your money on the right horses, the potential wild swings of the market are much less of a worry.
That said, there are always those who want to take advantage of volatility over the short to medium term time-frame, and the current precipitous downturn in the crypto market could be ripe for this.
Precipitous Bitcoin dump continues
Source: TradingView
First of all, there is no little matter of a huge dump taking place for Bitcoin. The price has crashed out of the ascending channel and does not appear to be slowing down yet. The measured move for the channel is on the chart at $88,000. It is starting to look like the bears could bring the price there. It just depends whether horizontal support at the current level will hold. Another concern is the gaping drop if $88,000 does not hold.
With all this in mind, it’s exactly at times like these when there is money to be made. Forecasting when the $BTC price will finally turn back around becomes all-important. Of course, we could even be seeing a descent into a bear market. All possibilities are on the table. That said, this particular scenario is probably not likely just yet.
Good buy levels for $ETH
Source: TradingView
For $ETH, it can be seen that the fake-out of the triangle has resulted in the price heading back down fast. The 0.618 Fibonacci at $2,881, and the 0.786 Fibonacci at $2,552 are both good buy levels. There is also the bottom of the triangle as a last possibility.
$SOL approaches next big support
Source: TradingView
The $SOL price is in precipitous decline right now. It has fallen out of the bull flag after turning the major support at $202 into resistance. The price is currently stopped at a horizontal level of support, but may continue on down to the stronger horizontal support at $162. This also could coincide with an ascending trendline as seen on the chart above.
A bounce has to come for Bitcoin and crypto. It is just a case of when, and how hard. It isn’t likely to be long before we find out both.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
