Last week, the cryptocurrency market marked one of the biggest corrections since the start of the year. For example, the price of Bitcoin has dropped from around € 54,000 to € 39,000 – a price drop of over 27%. Many cryptocurrency users, mostly newcomers, started to panic and wonder if this was a trend reversal that would lead to a new bear market. For this reason, Bloqport has released statistics showing that declines in the range of -25% to -40% are not unusual for the price of Bitcoin during bull markets:
Changpeng Zhao (CZ), founder and CEO of Binance, the world’s largest centralized cryptocurrency exchange, pointed out that cryptocurrency is a long-term game for hodlers and not suitable for short-term traders who panic at every hollow:
Hashcash inventor Adam Back has also brought positivity to the crypto community by re-emphasizing Bitcoin’s price target during this bull market cycle, and comparing Bitcoin to the gold market and in awarding a price of around half a million dollars for a Bitcoin:
After the deep price correction last week, the Monday market begins with a strong price rebound. At the time of writing, according to Coin360.com, one Bitcoin costs € 43,864.70 (+ 6.57%), one Ethereum – € 2,044.26 (+ 12.50%) and one LINK – 28.52 € (+ 10.33%):
Now, let’s analyze the price charts of the major cryptocurrencies against the Euro in the most remarkable timeframe.
BTC / EUR
In the daily chart (1D), BTC / EUR fell below the 30-day moving average (MA 30) and the trend line which can be seen as a bearish signal:
However, we believe it is too early to say that the uptrend is over as, right now, the price of Bitcoin is consolidating at the 90 day moving average (MA 90) and could receive strong support and resume the uptrend. It could be that the uptrend just changes its slope and trajectory in the chart in 4 hours (4H):
As can be seen from the chart, at the moment BTC / EUR is found on the lower line of the potential new ascending channel.
It should be emphasized that for the uptrend to resume, BTC / EUR must exit the Descending chain (downtrend) in the one hour period first:
As the chart shows, BTC / EUR is testing the upper line of the channel. If a breakout occurs, the uptrend within the 4 hour time frame will likely resume.
ETH / EUR
In the daily chart (1D), ETH / EUR continues to advance in the Ascending channel (uptrend) – an indicator that the bulls still control the market:
The price of cryptocurrency receives support from the 30-day moving average (MA 30). That’s why we think it’s worth keeping an eye on the price chart and trying to spot a access point. In our opinion, if the price falls to the lower line (trend line) of the channel and after that it bounces back, then it will be a good time to open a long position and try to catch the next wave in the Ascending chain.
LINK / EUR
After reaching the top line of the Ascending chain in the 1 day (1D) chart, the price of Chainlink has entered a correction phase:
This correction brought LINK / EUR to the lower line (support line) of the channel. As the chart shows, at the moment Chainlink’s price is attempting to bounce back from the lower line, gaining additional support from the 30-day moving average (MA 30) and 90-day moving average (MA 90).
Similar to Bitcoin’s price chart, Chainlink formed a Descending chain (downtrend) in the one hour period due to the current correction:
We believe that if a breakout occurs and LINK / EUR breaks out of the downtrend in the 1 hour chart, then a good time to enter the market by opening a long position may occur. The idea behind this potential long position is to catch the next wave in the ascending channel within a day’s time.
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The analysis is for informational purposes only and does not constitute investment, financial, business or any other type of advice and you should not treat the content of Bitvalex as such. Bitvalex does not recommend that any cryptocurrency be bought, sold, or owned by you. You are solely responsible for exercising due diligence and consulting an advisor before making any investment decision.