Resistance level – cryptocurrency market
For a moment, it seemed that the breakout through the resistance level would succeed, but then without warning, everything fell apart. It was very fast, and it was over in minutes. The decline, in the cryptocurrency market, stopped below the level of 166.92 USD and is currently consolidating. To be honest, I don’t believe it’s finished. Over the course of this week, I expect another decline, which can start at any time. However, it is important to follow the course response at the indicated S/R levels. Fibonacci levels can also be a good aid. The most important level is 0.618, where the S/R level is 139.66 USD. Let’s consider this level as crucial.
Certainly, the price should not get lower, because then it probably means that the cryptocurrency market is heading for a new low. So far, it seems that we can say with some assurance that we are dry. On the way down, there is enough support, and therefore potential levels, to reflect the price. Personally, I would see it at first on the border of support at 152.99 USD. Given the price action of the past trends, it seems to me to be the most sensible one. But of course, we have no guarantee more than what it is currently consolidating.
Well, we can clearly see a bearish divergence on the RSI. However, the other peaks were not even in the overruled part of the indicator, so there was a high chance nothing would come of it. However, when I look at the curve properly, it actually fell, even though the price was spying. Which is a sign that the bulls have lost their strength. If you follow my analyses of the cryptocurrency market regularly, you know that this indicator is very relevant to me. Now I wonder how low the RSI curve will fall.
Ideally, the indicator values would not fall below 40 points. But it will be fine as long as we do not cross the oversold border, which is a level of 30 points. There was a bear divergence on MACD too, and the indicator curves twisted like a snake, so the signals from these crosses had no weight. And at the moment it is clear that the momentum is negative. The Stochastic RSI also saw that the bulls were losing power because the curves could not even approach the overbought segment.
Hopefully, this will not last, and we will soon find out the result. We simply do not know if the monthly price increase was not just one of many other retracements. However, the truth is that this time we have a reverse pattern at the bottom since some stability and cryptocurrency markets have been sold out. The last move was from minute to minute, but it was expected. Moreover, in the last few days, there has been a lot of emotion, and it has been seen that more and more people jump into the market mindlessly. The cleanup was therefore appropriate.
Read more about how cryptocurrencies are currently consolidating right here: https://en.wikipedia.org/wiki/Cryptocurrency#Economics