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Vitalik Buterin: Crypto Is In a Bubble, But It's Not a Toy

21 May, 2021 Martin Petkov
Crypto Is In a Bubble

Hello and welcome, everyone. It's Martin here at CryptoGains. Beginning with Bitcoin, it was able to bounce back quite significantly. But it also failed to break through a critical resistance, which means that it's going to struggle as it's trying to recover its lost ground.

Currently, as we know, we have very strong support around the $30,000 level, which was the level that whales maintained. And Bitcoin bounced higher off that level, but it's also facing very strong resistance around $41,200 and then $48,170. Nonetheless, it's currently following a short-term descending resistance line, which means that it's still in a downtrend, and there could still be more shocks and corrections.

It's also interesting to observe that Vitalik Buterin, the founder of Ethereum, observed that crypto is indeed in a bubble. So, he's also confirming that some corrections are possible, but it's not a toy, signifying the fact that the crypto market has evolved quite substantially over the last few years, and it's maturing rapidly.

Nonetheless, Bill Miller, a leading investor, believes that Bitcoin is still a safe investment despite the market crash. And, if anything, if there are lower prices, it's even better value. So let's now move to the charts and see how we can trade some of these insights.

Looking at the one-hour chart on Bitcoin, $40,600 is the critical pivot point, a strong resistance area, which has now turned into support. And above $40,600, you could initiate long positions, buying Bitcoin, with targets at $42,000, which is a very strong resistance, and then $43,500, which is the next resistance area. Conversely, below $40,600, you could consider selling Bitcoin, with targets at $39,700 and $38,500 on the short side.

But now, let's take a look at Ethereum. To me, for Ethereum, the critical level to look for is $2740. And because we currently trade above that level, that's a good opportunity to initiate long positions. And we have resistance, first at $2850 and then at $2990, which are going to be our Take Profit targets for long positions. Conversely, below $2740, you could consider selling Ethereum, taking profit at $2,660 and $2,590, which are the nearest support areas. 

Now let's take a look at Ripple. Ripple experienced a very, very deep correction, which I believe is a bit overextended. So above $1.12, I see good opportunities to buy Ripple, with targets at $1.20 and $1.25 in the near term. Conversely, however, if we are unable to maintain that support at $1.12, we could see declines, with good ideas for short positions with targets at $1.065 and $0.96.

And now we're moving to Cardano. The pivot point for Cardano is $1.70. Above that level, with opportunities to buy Cardano, with targets at $1.87 and $1.94, which are the nearest resistance areas. Conversely, if we fail to maintain that critical level at $1.70, we could see declines to $1.61 and $1.50.

And finally, let's take a look at Monero. $305 was a very critical, very strong resistance for Monero. And now that we're above that level, I think the way is clear for targeting long positions, with targets at $335 and $360. It's quite possible to reach $335 reasonably quickly, so stay in that trade and take profit at $360. Conversely, however, below $305, declines to $290 and $264 are possible.

Thanks for joining me today. Keep learning with the video education section and the CryptoGains Market Insights subsection. Remember to join the Crypto Signals Made Easy channel, where you can get a lot of education, articles and trading ideas. Trade wisely, and have a good weekend. 

Bye-bye.

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