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How Low Can They Go? BTC, ETH, XRP, DOT, SOL Analyst

19 May, 2021 Martin Petkov
How Low Can They Go

Hello and welcome, everyone. It's Martin here with CryptoGains. Of course, the main focus today is on Bitcoin, which has sunk below $40,000. And as you may know, the $20,000 marks — 20, 40, 60 — are critical levels for Bitcoin, so this is something very significant, indeed. Also, what we're observing based on on-chain data are some very significant inflows to exchanges, as well as the largest inflow for a single day on Binance, suggesting that maybe a lot of traders are preparing to sell their coins, and we could anticipate even further declines.

Technical analysis from be[in]crypto suggests that we've broken some very important support levels, and the next level of support can be found around the levels of $36,500 and $39,000. However, on the positive side, India is considering introducing crypto regulation instead of a ban. And this, of course, is going to be positive, as India's a very large economy and the country with the second-largest population. And, of course, allowing crypto use and adoption there is going to be support for the overall crypto market.

And, in addition to that, some analysts point out the fact that, while long-term holders were distributing and trimming some of their positions, now, actually, from the end of March/beginning of April, we're witnessing accumulation, exemplified by the fact that long-term holders are holding a higher proportion of the available Bitcoin supply.

In other major cryptocurrencies, Ripple has announced a partnership with Egypt's largest bank, which is very supportive for the distributed ledger tech provider Ripple. And also, Polkadot has finally launched the long-awaited parachains on the Kusama network, which is supporting Polkadot. So, let's move to the technical charts and see how we can trade some of these insights.

For Bitcoin, the critical pivot point is at $40,000. Above that level, buying Bitcoin, with targets at $41,260 and $42,500. This is the level which used to be a support and where the big collapse started. If we're able to clear these levels, we could recover pretty quickly to $45,500. However, conversely, below $40,000, we could see declines to $39,000 and $37,000.

And now we're moving to Ethereum. The pivot point for Ethereum is $2940. Above that level, opportunities to buy Ethereum, with a target at $3023. And then, if we clear that level, we could recover fairly quickly to the level at which the big collapse happened, which is around $3200. Conversely, below $2940, you can sell Ripple with short positions, with targets at $2860 and $2600.

And, now, let's take a look at Ripple. Ripple, due to the positive news that we discussed earlier, is holding some of its gains. So, the critical point is $1.47, as we can see. Above that level, opportunities to buy Ripple, with targets at $1.54, $1.60 and $1.67. Conversely, below $1.47, declines are likely on the short side, with targets at $1.41 and $1.345.

Now we're moving to Polkadot. Polkadot has not yet responded to the positive news and developments around the launch of the parachains network, so it presents some good buying opportunities above $37.50. Below that, we could see declines to $35.65 and $33 on the short side. However, if we're able to clear the $37.50 level, we could see increases to $40.60 and $42.50.

And, finally, let's take a look at Solana. Solana reached a new all-time high and then retraced in the last couple of hours. To me, the critical level is $51. Above that level, buying Solana, with targets at $54.50 and $58. Conversely, below $51, selling Solana, with targets at $48 and $46.

As always, keep learning with the video education section, the CryptoGains Market Insights subsection, and 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.

Bye-bye.

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