BITCOIN Flash Crash - WHAT HAPPENED?
Hello and welcome, everyone. It's Martin here with CryptoGains. We're beginning this week by discussing Bitcoin and the crash that we experienced over the weekend. Now, there could be a lot of speculation about what actually caused that, but some of the fundamental factors include the decline in the hashrate of Chinese mining pools, the Turkish government's ban on cryptocurrency transactions and rumours in the US about money laundering and other illegal activities related to Bitcoin.
So that could be one or several of the reasons that triggered this sell-off. However, on the positive side, today, we're walking in a sea of red, with all major cryptocurrencies experiencing recovery and providing excellent trading opportunities. So let's take a look at the charts and see how you can trade some of these developments.
First of all, we're beginning with Bitcoin versus Tether. And, to me, $57,000 is the critical pivot point or pivot level. Above that level, I’m looking for long positions in Bitcoin, with targets at $57,500 and then $58,500, which are the nearest resistance levels. Conversely, if we break below $57,000, declines all the way down to $56,400 and $55,700 are possible. The Relative Strength Index on the one-hour chart is now above 50, and the MACD indicator is just climbing or oscillating around zero, giving us hope for this recovery rally.
Next, we're moving to Ethereum. The critical pivot point for Ethereum sits at $2250. Above that level, buying Ethereum, with the first target at $2280 and then $2305. Conversely, below $2250, more likely, the bears will prevail with the first target at $2230 and then subsequently $2200. Similarly, the Relative Strength Index is just about 50, and the MACD indicator above zero, also giving us confidence in that recovery rally.
Next, we're moving to Binance Coin. For Binance Coin, I will be waiting for prices to be above $525 to initiate long positions. The first target is the nearest resistance, $530, and then $540 is going to be our next target. Conversely, below $525, $520 and $510 are the nearest support areas. These are going to be our take-profit targets if initiating short positions.
Next, let's move to Chainlink. For Chainlink, above $39.80, we can see that the Relative Strength Index is above 50. Both of the lines in the MACD indicator are above zero. So over $39.80, I'm seeing opportunities for long positions, with the first target at $40.75 and then $41.50. These are the nearest resistance areas. Conversely, below $39.80, we could see declines down to $39, where you can be initiating short positions.
And finally let's take a look at Solana. Solana reached extremely high levels of $32.80, almost $33, and then it dipped following the correction that we saw on Bitcoin. Currently above $31.55, to me, there is a good opportunity to initiate long positions. The first target is, of course, at $32, which was the high point registered during the previous hourly candle, and then $32.80, which is near the recent highs from over the weekend. Conversely, below $31.50, we could see declines, with take-profit targets on the short side at $31.20 and $30.60.
Thank you very much for joining me today. Have a good week. Keep learning with the video education section in the CryptoGains Market Insights subsection. Importantly, remember to join the Crypto Signals Made Easy channel for lots of insightful articles and trading ideas. Trade wisely, and I'll see you soon.