After The Bloodbath: BTC, ETH, LTC, BCH, & DOGE
Hello and welcome, everyone. It's Martin here with CryptoGains. Of course, first of all, we need to contextualise what just happened yesterday. There was a massive correction, with Bitcoin and other major cryptocurrencies dropping more than 30%. And, probably, a lot of new market participants have been shocked and unable to explain what's going on.
Of course, it's unrealistic and not reasonable at all to try and think in reductionist terms and attribute yesterday's events to a single cause. But, some of the likely reasons were, of course, Elon Musk, who tweeted over the last couple of days that he's withdrawing some of his support for cryptocurrencies and Bitcoin, in particular.
In addition to that, the Chinese are cracking down on cryptocurrency use, which, of course, is the biggest market. Reducing crypto consumption is a big hit to the market, but probably, most importantly, it was the fact that the market was overleveraged, with a lot of open positions, which were quickly liquidated, driving prices lower and lower continually.
However, Bitcoin was able to reclaim $40,000, although it's currently consolidating. But, basically, analysts from be[in]crypto believe that if it reclaims $40,000, $43,000 may be the next reasonable target. However, $30,000 remains one of the most robust support areas. Bitcoin dominance has jumped somewhat to 44% simply because the downfall in altcoins was more significant.
But, as we can see from this heat map, pretty much all the crypto world is in red, with the exception of Bitcoin. At the same time, the global cryptocurrency Google searches reached a new all-time high, beyond the crypto hype of the end of 2017/beginning of 2018, so lots of mixed messages at the moment. So let's take a look at the chart and see how we can trade some of these insights.
To me, above $39,500 would be a good level to aim for before initiating long positions in Bitcoin, with targets at $40,750 and $42,500. Conversely, below $39,500, the downside prevails. with the nearest support at $37,600 and then $35,200. But, of course, as I already said, the longer-term support is at $30,000, which is around the lows that we saw yesterday.
Now let's take a look at Ethereum. For Ethereum, to me, $2575 is a reasonable support area. Above that level, buying Ethereum, with targets at $2770 and $2900. Conversely, if we bring below $2575, more downside is possible, with the nearest targets for the short positions at $2415 and $2200.
Next, we're moving to Litecoin. For Litecoin, I'd like us to break above $205 before initiating long positions, with targets at $210 and $220. Conversely, below $205, the downside is more than likely to prevail, with the nearest targets at $200 and $190.
And, now, we're moving to Bitcoin Cash. For Bitcoin Cash, I like the level of $760 as a pivot point to initiate long positions, with targets at $800 and $850 afterwards. Conversely, below $760, we could see more declines to $740 and $710.
And, finally, let's take a look at Dogecoin. For Dogecoin, we have robust support around $0.35. So, above that level, buying Dogecoin, with targets at $0.38 and $0.42. Conversely, the downside will prevail below $0.35, with targets at $0.33 and $0.30.
These are all the ideas for today. Thanks for joining me. Trade wisely and keep learning with the video education section. Very importantly, remember to join the Crypto Signals Made Easy channel for lots of insightful articles and trading ideas. Thanks for joining me today. Trade wisely, and I'll see you soon.