Bitcoin just broke to the downside after weeks of ranging in a converging triangle pattern on the 4-hour timeframe. This bearish breakout is a negative indicator for the crypto market in general and we might see Altcoins sell-off.
Ethereum price is already selling-off. In just today we have seen the price crash back down to the key support level we talked about in our previous analysis.
If this support level holds, we might see a price bounce in the ETH price soon! However, with Bitcoin selling off we might never see this bounce in Ethereum.
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What Next For Bitcoin?
The key level to watch for Bitcoin is the $35,629 resistance region. As far as the price continues to trade below this resistance, we can expect to see the Bitcoins sell continue throughout this week.
This sell-off would likely push the Bitcoin price back down to the $28,000 support in the coming days.
However, if the price breaks below this $28k support, we might see an even deeper retracement in Bitcoin price in the coming days.
This sell-off would complete the higher low bearish structure we have been following in previous analysis Warning: This Is Very Bearish For Bitcoin!
What Does A Bitcoin Sell-off Mean For Ethereum?
Ethereum is largely correlated to Bitcoin. This means this sell-off we are seeing in Bitcoin will likely drag the Ethereum price down with it. The Key level we are watching right now on ETH is the $2,205 support.
This support was formed when Ethereum broke out and retested the flag pattern on the 4-hour timeframe. As far as Ethereum bulls can hold this support, Ethereum has a chance of reversing back up soon.
However, a close below this $2,205 support creates a bearish price structure and increases the likelihood of us seeing more sell-off in ETH just like Bitcoin.
Bitcoin is dragging the whole crypto market down with it but for how long? We are currently bearish on Bitcoin and will remain bearish as far as the price continues to trade below the $35,629 resistance.
This $35,629 key resistance is the new level the Bitcoin price must break through before we can see any sign of bullish buying power in Bitcoin.
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