Crypto Crash Could Send Bitcoin Price To New Lows! | Will Altcoins Die?

So, the current bitcoin price is 19 147. If you have a look at this macro chart over here which is the one-week time frame, you can see that the bitcoin price is currently threatening to lose the 255 ma. It has actually, well, it’s already I lost it. It broke below the previous week’s low which I see as a very bad sign. There’s going to be a lot of us to look at today the previous week’s low came in at 19 660. Unfortunately, I wasn’t able to get live in a time, in order to show you the potential short trading opportunities. So, we’re going to have to reevaluate and wait for a potential bounce and either short from higher or by the depth essentially but we’re looking at it over here. If I just zoom out just for a bit of perspective if you have your main liquidity zone coming in from the previous all-time highs now I don’t expect this to be a massive support. I wouldn’t be surprised if we just stick around here for just a little bit longer a couple of weeks more. Then, eventually, I am expecting to lose this area whether that happens in the next few months or over the course of the next year that I’m impartial.

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I don’t really have a strong bias towards that but I’m watching it closely for something like this. You now lose the 255 ma you kind of consolidate within this area, but going sideways to down retest into that liquidity zone and then pretty much that would activate your short trade all the way down to this target level here at 13 8 1080 which is a key yearly level. I’ll show you another chart it’s also a very important quarterly level which we spoke of yesterday we said the risk remains to the downside because of the key quarterly areas because of the quarterly areas of support. If you have a look at this candle and I mentioned this on my Twitter this morning. If this turns into a full-body red candle meaning that there’s no wick that’s left behind that will be incredibly bearish. I would say with an extremely high probability that you can probably get some birds at 13 880. If you have a look at the key quarterly look at full-body red candle closes like that’s going to be bad. But even if it doesn’t it’s still going to be a major challenge for bitcoin to now get back above important key levels so from the bullish scenario.

Let’s say you want to see kind of a retest into that zone and they want the price to start to come back up break above that re-test the 30k level and continue on upwards from there that’s kind of what I’m looking at. How does it sound to me? Is it good? So, it’s your incident can you use the cable. That is it for bitcoin for Ethereum. Ethereum looks like it will probably hit its target. First, they’re almost the same distance away on the quarterly and it’s exactly the same picture I actually thought Ethereum the last salute that we had was going to tag the 743 level. It’s coming in down 27 from here, so I would definitely say spot orders for those levels. I think that Ethereum is probably going to be a better bet in the long run anyway in terms of your risk-to-reward ratio and how many potential gains. You could get out of that in the long run, if it starts to lose this level then we are looking might go at 291 dollars. So, why is this happening well one potential reason could be the DXE. You can see the dollar index is starting to break out again the candles basically. But all the money is moving into the dollars relative to all the other currencies.

So, let’s continue for those of you that may have missed it. I, essentially, just outlined the main areas of Bitcoin and Ethereum on the key quarterly. It’s a big red candle we need to see how the quarterly closes today. If it closes at new lows it will be incredibly bearish going forward and I just moved from there straight onto the Dixie which is the dollar index. I said you can see that we’re starting to break above the previous areas that were resistance is now going to start to most likely flip into support. This weekly close will also be important if we close anywhere here or higher. So, above 105.2 on |Dixie then risk on assets are most likely going to struggle. So, if you have a look at the with the crypto right. So, you can see that we have a red candle over there. I wouldn’t be surprised for it to turn into an engulfing candle and I actually also want to quickly just switch this onto the quarterly chart. 

So, we can have a look at that. I mean it really looks terrible. There’s not much else that you can say. If you put it onto a six-month chart, let’s see what that looks like. Let me just switch at month six so looking at the NASDAQ, you can see that’s a full-on bearish engulfing candle. So, these are all signs in the macro that risk on assets is going to be tough to buy right now. It’s a difficult time for crypto and you really need to be sparing with your cash you need to save it as much as possible you have the one day chart on bitcoin here which we have shown before I mentioned that look at the volume when this move happens and if you have a look at this even the self that we’re starting to get now the volume is actually still relatively low it’s still declining volume which shows that the most likely major move has actually not even happened yet so if this does play out to the short side it could lead to the ultimate capitulation which would take us down to these key levels eight at 13 eighty so i’m watching carefully for that but nevertheless you are below the 22 m a on the daily and historically that has been a very important uh moving average to look at.

If you look at it any time that you are below it and it’s angled down it kind of just gauges you throughout that move. So, it keeps you out of trouble and I had this liquidity box over here. I would imagine what’s going to happen is this is going to be your new level to clear. So, what previously and this is what trading is all about is you just work from level to level. First, we were using this liquidity zone all the way at the top. We’ve just moved it down since we had this is the last important area to clear which was 38 000. Then we moved it over here to now. You need to get back above 30 000 before you can turn bullish and I’m pretty sure that. If price action continues to stick around this level over here. Then your new level to clear is probably going to be to get back above 20 000 and that ties in with these other charts that we have over here. You see the whole liquidity zone over here coming in at 20 000.

That’s exactly the same thing if this starts to flip into resistance, then, you can imagine all the bulls anyone that’s buying now is going to be trapped which is why I really recommend waiting for a proper uptrend before you enter your long-term investments so going on to this chart. I think it’s probably going to be time to clean this chart up this was our range trading chart which we said look. If you get if you recapture the mid-range over here. Then, traders are most likely going to start to target the upside. It’s so weak that we weren’t even able to recapture the range highs. So, I’m probably just going to start deleting that out and work in a tighter range which is the one that you can see over here so the tighter range that I had I outlined this in the newsletter I said that look. If you’re a degenerate gambler that’s unable to sit on your hands which is what I recommend is to sit on your hands. You’re absolutely forced to take a trade then you had your very sloppy series of higher highs and higher lows being established over here. I did mention that relative to this area over here on the left-hand side, you could attempt to take along. 

This article is a transcription of a video made by Crypto Banter

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