Flash Crash to Support:
There’s no doubt a pretty substantial crash has occurred in the entire CryptoCurrency asset class over the past week. A number of analysts will state it’s due to fundamental factors, which may be true. However, levels reached in this most recent sell off have been to fairly predictable levels.
To see how broad-based this trend has been, let’s look at Bitcoin BTC/USD…
Take a look at the bitcoin chart:
A fairly straightforward test of the $1,835 support level occurred over the weekend. You can see the massive uptrend started early this year has been hyperbolic… a trend marked with with just a handful of reversal trading days.
When broken, this type of trading pattern always creates a very violent trend snap, as which occurred this most recent move downward. However; as you can see from the horizontal line on the chart above, the
$1,835 level seems to now be a new support level, and the most recent bottom confirmed the test back in late May.
With this new retest, we have enough support to now call this level a major support level for BTC/USD.
Moving forward we should see a quick climb back up to the $2,400 level, where in we will most likely see a resumed consolidation before making another break higher or lower.
Check back with us later this week for more analysis on various Cryptocurrencies…
In coin we trust,