The cryptocurrency market has suffered a downwards turn in recent weeks. Bitcoin has fallen to its lowest level in 16 months, hitting below $30,000. The cryptocurrency market has been in fear and panic over the past two weeks. Other blue-chip currencies have also seen significant drops over this period.
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Bitcoin (BTC)
On Thursday, Bitcoin fell to its lowest in 16 months, which means that its riskier counterparts, stocks and cryptocurrencies alike, fell. This is the pressure on the market due to TerraUSD’s collapse, a so-called stablecoin.
Many people are buying and selling cryptocurrencies like Bitcoin, leading to an increased demand for transactions. This is, in turn, causing the transaction fees to increase dramatically. For example, the fees had increased by 76% over the last seven days.
One of the most significant moves over this period was an inflow of Bitcoin to centralized exchanges. For example, Tuesday saw Bitcoin’s crypto price below $30,000 per coin, and on that same day, a total of 49.76k BTC were deposited into centralized exchanges such as Binance.
In a 1w timeframe, the price action of $BTC/USDT breaks the 30k support zone. After that, we can expect a further decline in prices for BTC, where we may see a price level close to 20K.
Ethereum (ETH)
Ethereum has been one of the latest victims of the crypto crash. It lost around 20% in value over the past 24 hours. Moreover, the value of Ethereum has steadily declined with other cryptocurrencies over the past few days as concerns about the global economy were heightened. As a result, many investors sell off investments that are considered risky, including cryptos.
In the 1w timeframe, $ETH/USDT has broken below the trend line, and next, it is going to a major horizontal support zone. After that, we have to wait for a breakdown. If it is retested successfully, we will see more blood in it.
Aave (AAVE)
Aave has been on a negative slope for the past couple of weeks and is currently at its lowest point. Cryptocurrencies have had a difficult time lately because the market has been very volatile. This price drop also impacts other altcoins.
Technically $AAVE is taking its last breath on a one-week solid support zone. If it gets successful in a test of this support, there will surely be an upward rally, but in breaking this 1week support, for sure, it’s heading down.
Solana (SOL)
Solana (SOL) has had a tough week. Currently, it is priced at $37, which is the lowest price for Solana in over six years. However, prices have fallen 26% in the last seven days, and there has been a price crash of around 70% since early April.
Solana is a VC-backed project with more than 30% of its amount allocated to VCs. This has been the subject of discussion within the crypto space, where some have worried about these backing sources withdrawing funds from the project.
In a 1w timeframe, $SOL/USDT has broken the double top neckline, and candlewick also reaches the major support zone. If it is retested successfully, then it can go downtrend.
Polygon (MATIC)
The cryptocurrency markets are currently in bad condition, and the prices of altcoins such as Polygon have decreased sharply. MATIC is in a tough economic situation following LUNA-UST’s crash. The MATIC price has dropped by 57% within ten days. This rapid crash has caught many investors off guard and generated a lot of concern.
In a 1D timeframe, $MATIC/USDT will break the 1st horizontal line. If it breaks the 1st support, then it can go downward.
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Closing Thoughts
Discipline and Patience are the most important components of a successful trade. According to the above analysis, the coins we just discussed about might make you decent gains if other market conditions prevail favorably. Again, it’s your hard-earned money that you’ll be using. Do Your Own Research before investing.
Disclaimer: Our analysis is for educational purposes.
