The Bitcoin and Altcoin markets are selling off and selling off hard. In this analysis, I will be talking about three of the biggest cryptocurrencies from these markets, namely; the Bitcoin, Ethereum and Chainlink.
I will be providing you with my future outlook for these crypotcurrencies, as well as important levels, patterns and price regions to watch out for in the coming days.
Bitcoin: How Far Will It Dump?
Bitcoin is currently crashing after the breakout that occurred earlier this week could not push higher. I warned about this potential crash yesterday in my Bitcoin analysis titled “Bitcoin Bullish Momentum Dries up As Price Breaks $12k. Will Price Crash?“, giving my readers ample time to be prepared for it.
Well as of today, the price as done exactly what I warned about and is currently testing the base of that ascending triangle.
If price finds support at that region, then there is a high probability that we mught see a bounce off and surge back to the $11,500/$12,000 resistance region in the coming days.
However, if the Breaks through that base channel resistance level, then there is high probability that we might see more weakness come into the Bitcoin market and more dump to the price region or even lower to the $10,000 support region in the coming days.
Ethereum Unable To Break Resistance. Are You Still Holding The Back?
I talked about the major resistance Ethereum tested and crashed from in a previous analysis titled “Ethereum Running Into Strong Resistance. Will Price Crash?“.
In that analysis I warned my readers about the major downside potential building up on Ethereum and how a price crash might happen soon.
Well that bearish analysis as been playing out extremely well so far. The Ethereum price as broken through the base support of the ascending triangle and is still heading lower.
The important support regions I am watching out for are 0.03505 price level the Ethereum price is currently testing and the 0.032703 price region I believe the Ethereum price might crash to once it breaks that initial 0.03505 support.
If the 0.032703 support doesn’t hold, then there is a high probability that we might see a massive crash in the Ethereum price to the 0.027785.
Is The Chainlink Bull Run Over?
Chainlink as been one of the best performing Altcoin in the De-fi category surging to over 270% in gains in just a couple of weeks.
However recently the Chainlink price as been crashing and crashing fast, leaving a lot of traders worried that this might be the end of the Altcoin bullish run.
I warned about this chainlink blow-off top and subsequent crash in a previous analysis titled “ChainLink Exploding. Is This A Good Buy Or Sell?“.
The important level I am currently watching to see Chainlink find support at is the 0.001078 price level.
This level as served as an important support for the Chainlink price in the past and might do so again the nearest future.
My Trading Plan
My trading plan is simple, I will wait for the price of the Bitcoin, Ethereum and Chainlink assets to come to my predefined support regions, bounce and hold.
One it does that, I will immediately start looking for bullish reversal signs to show me that the bearish dump is over and it is safe to buy back the cryptocurrencies.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.