The crypto market is going down for the fifth time in a row. The negative data of the Producer Price Index and the Consumer Price Index hinted that the interest rate cuts and the quantitative tightening might not come true soon. Since the markets are highly " emotional " in terms of the FUD and FOMO, we are swimming in the blood bath once again.
Though some technical levels were too hard to be broken by Bitcoin and Ethereum, the whole market had the sense that the top had not come yet. Unfortunately, the strong resistance levels became even stronger as the narrative combined power with threatening data from the central banks.
As an indicator of the trend, Bitcoin's price actions matter for NASDAQ, crypto, and indirectly S&P500. Ethereum, on the other hand, shows the interest in the crypto ecosystem as the major altcoin.
Sadly, some strong support levels have been lost in several altcoins and it may take longer for them to recover. Let's see the critical price levels to have an eye on.
Bitcoin Should not Close the Day Below $63.5K
This is the most important chart that all crypto investors ought to watch. Basically, the uptrend channel has topped around 73.5K and the retracement to Fibonacci's 0.5 level was pretty normal. However, the threatening case is that there is no sign of recovery, even more, we are going down to the channel below it.
The daily close below $63.5K may open the doors for a drop that can reach up to $58K in the daily chart. In such a case, the market will have 2 major resistance levels to continue the bullish trend.
Please also note that we have lost the 20 - day moving average around $67K already. Even though we do not want to think about the worst case scenario, the swings in the lower channel is quite possible.
Ethereum Entered the Lower Channel Already
The chart of Ethereum consists of several channels that the price has a potential to swing in. First of all, the expected thing happened and Ethereum could not break above $4100 level. IF it had taken place, we would be talking about $4600 Ethereum, $0.60 HIVE and $0.04 SPS in that case.
Yet, reality is a bit harsh.
In the case that Powel talks hawkish and the markets go red again, we may even see some price actions that reach up to $2900 in Ethereum. However, even in the worst case, I do not think the price will stay around here.
If we assume that the narrative of hawkish statements by Powel is already priced in the market, the recovery may slightly happen before the week is over. Yet, this is just a " thinking loud " practice of mine. The depression in the market may continue for a longer time if both Bitcoin Spot ETFs and the trend in Ethereum do not start to go up.
For the rest of the altcoins, there might be no need to check one by one. Apart from SUI, APTOS and SOL, the rest has a tendency to follow Ethereum's actions.
What do you think about the situation in the crypto ecosystem?
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