Red across the market; BTC, ETH, BCH, ZEC, MATIC analysis
Hello and welcome, everyone! It's Martin here with CryptoGains. The whole crypto market is bleeding. The majority of altcoins, as well as smaller coins, as well as bitcoin, are deeply in the red. So, let's begin by analysing a couple of articles before proceeding to the technical charts with ideas of how we can trade the current market situation.
Bitcoin rejected its attempts to reclaim $35,000, and now it's packing the trading range between $31,300 and $40,550. It currently has some minor support at $32,725 and $30,500. What is quite worrying is that China's central bank is worried about stable coins risk to financial systems. And unlike some major providers of payments, such as Visa, China's central bank believes that digital currencies pose a serious risk to global financial systems. So, this could be one of the factors driving the crypto market down.
There are some positive developments with polygon, however. And that is it has partnered with Alchemy to improve network capabilities. Of course, making the network more attractive and potentially driving prices up. So, let's move to the technical charts and see how we can trade these insights.
Beginning with bitcoin, notice that we have not just a 'sell' but a 'strong sell' signal, suggesting very strong selling pressure on bitcoin. We have broken down long-term support to $32,600. To me, this gives us a good opportunity to sell bitcoin with a fairly good opportunity to reach lows of $31,400, and then, if that level is broken, we can go as low as $30,450. However, if we're able to clear the level of $32,600, we could see a bit of a recovery rally to $33,300 and even to as high as $33,800.
Now, let's take a look at ethereum. We also have a 'sell' signal on Ethereum, which merged around $2240. Currently, we have broken the support at $2190, giving us more opportunities to sell Ethereum, with targets at $2090 and $2030. However, if we're able to clear the $2190 level, we could see a bit of a recovery rally with targets at $2240 and $2340.
And now we're moving to bitcoin cash. Bitcoin cash also comes with a 'sell' signal on StormGain. However, here I believe that the picture is a little bit different. Personally, I believe that as long as we're able to hold the support at $480, we could see recovery, with targets at $492 and $502. You can see that my targets on the upside are a bit shorter simply because the whole market is going down. So, it's more likely that if we break the $480 support, we could see declines to $470 and then all the way down to $450 on the short side.
Now let's move to zcash. Zcash, again with a 'sell' signal on StormGain. To me, a critical level here is $112.30. If we manage to clear and break above that level, you could consider buying zcash, with targets at $117 and $123. However, as long as we're below $112.30, it's more than likely that we could see more declines, with targets on the short side at $108 and $105.
And finally, let's take a look at polygon, which we discussed in regards to the developments with the cryptocurrency, as well. Similar to zcash, if we're able to sustain the support at $1.05, we could see a bounce back up, with targets for long positions at $1.10 and $1.167. However, if we break below the support at $1.05, we could see declines taking us to the nearest next support level at $1.02, and then even lower down to $0.95.
These are all the ideas for today. Keep learning with the video education section and the CryptoGains Market Insights subsection. And remember to join the Crypto Signals Made Easy, an exclusive Telegram channel for insightful articles and trading ideas. Thanks for joining me today! Trade wisely, and I'll see you soon.