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Massive Crypto Carnage, #Bitcoin is Getting Crushed!

23 Apr, 2021 Martin Petkov
Bitcoin is Getting Crushed!

Hello and welcome, everyone. It's Martin here with CryptoGains. We're experiencing massive carnage across all major cryptocurrencies, with very significant declines. Bitcoin dropped below $50,000, and it's currently trading even below $49,000. According to analysts from Be[in]Crypto, it's likely to find support around $46,600 to $47,600.

It seems that speculation that US President Joe Biden's administration will increase capital gains taxes is what sent shockwaves in the crypto space, which caused Bitcoin and Ethereum, the leading cryptocurrencies, to start declining, which drove the whole cryptocurrency market down. However, what is more, encouraging to know is the US House of Representatives is about to create a crypto task force, which is going to join members of the Securities and Exchange Commission and the Commodities and Futures Trading Commission to provide some guidance and regulation around cryptocurrencies, which, of course, is going to facilitate adoption across institutions and drive prices higher in the long term.

Finally, another interesting development is around SushiSwap, which is now integrating Chainlink on Ethereum. And, of course, this is good news for SushiSwap and is likely to affect prices in the near term, as well.

So let's take a look at the charts and how we can trade some of these insights. Beginning with Bitcoin versus Tether, we can see – I'm using a short time frame – on the five-minute chart, we're in a clear downtrend. And, for me, to be able to feel confident in initiating a long position, I would wait for a decisive break above $48,600, which will invalidate this downtrend, to initiate long positions, with targets at $49,400 and $50,300. Conversely, below $48,600, the downside prevails, with the nearest support level found at $47,500. But then, if we break below that level, we could be seeing declines all the way down to $46,300, which is in line with the Be[in]Crypto article that I discussed a minute ago.

Let's now move to Ethereum. Ethereum is in a similar downtrend. However, we're seeing a break above that critical resistance level, that descending resistance line. So, over $2200, there is a good opportunity to initiate long positions, with targets at $2230 and $2260. Below, testing higher levels near $2300. However, below $2200, it's quite likely that we may see further declines, first taking us to $2150 and then $2110. Actually, I'm going to move that line to the near resistance, which is around $2150 because such substantial declines below $2100, at least for the time being, don't seem very likely to me.

Now let's take a look at Ripple. Ripple experienced major corrections, with drops below $0.90, but now it's recovering. To me, one is the critical pivot point, critical pivot level. Above that level, long positions, with targets at $1.09 and $1.20. Conversely, below $1, the downside could prevail, taking us again down to $0.95 and $0.90. So fairly quickly, a quick overview of Ripple.

And now, let's take a look at Bitcoin Cash. We could see fairly strong resistance forming in Bitcoin Cash, around $780. So, I'm waiting for a break above that level to initiate long positions, with targets at $820 and $870. As long as we stay below $708, however, I believe that the downside is going to prevail and could take us further down to $730 and $690.

On the five-minute charts, we can see that the MACD line is now crossing zero, which is encouraging, and the Relative Strength Index is above 50. However, on the longer-term timeframes, we could still see that we have just recovered oversold territory on the Relative Strength Index on the one-hour chart, and we're still well below zero on the MACD indicator.

And, finally, let's take a look at SushiSwap. SushiSwap declined quite substantially, reaching lows at $10.20. However, now it's recovering and above $10.80, which was a resistance area. I'm seeing opportunities for long positions, with targets at $11.30 and then $12.65 if we clear that first resistance. However, on the downside, if we break below $10.80 once again, $10.20 and $9.50 are going to be reasonable targets for sales for short positions.

Thanks very much for joining me today. Keep learning with the video education section in the Crypto Gains Market Insight subsection. 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 have a good weekend. 

Bye-bye.

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