The Cryptocurrency Market Dips as Bitcoin Straddles $42k Mark

At the time of writing, BTCUSD is trading at about 42273, after just breaking down from a crucial level of support at about 42500.

This was the major support for Bitcoin was holding. That level had a lot of significance for Bitcoin.

When we are trading above, it is generally quite bullish for Bitcoin upon retesting the line.

A lot of the buyers step in and give us continuation towards the upside.

So this was the support that we had to hold for any potential short-term bullishness back towards the upside.

We broke down from the support; we started to retest it as resistance and are now following through towards the downside.

Bitcoin will probably sell off to come back and test the level at about 40000 for support in the immediate short-term, so keep a lookout for it.

We might come back down to that level and put in a double bottom before rallying back towards the upside.

In the immediate short-term, we will probably have a selloff once again and retest the week-low at around 40000.

Indicators

The MACD index moved deep into the negative side, showing that there isn't any positive momentum in the market that could be capitalized on in the next few days.

The RSI index has moved around value = 38, which means that the price will remain on the same spot with little chance of going on a surge for the next period.

ETH/USD

At the time of writing, ETH is trading at 2863 after getting rejected at the resistance level that was at 3100.

So we had a rejection and consequently had a selloff towards the downside.

Currently, we have come down to test quite a major level for support at 2900.

If ETH closes the daily candle below 2900, that would be quite bearish for ETH since it was the previous resistance that we broke out from.

If we lose the level of support at 2900, we will probably have a selloff back down to retest the support at 2650.

However, if ETH can manage to hold this level of support for a couple of 1-hour candles, then there is a possibility that we might get back towards the upside.

If we bounce back to the upside, the resistance to look out for will be at 3100.

Ethereum will probably follow Bitcoin's direction, which will be attempting to break above the support that we failed to hold.

Indicators

Currently, at 37.50, the RSI reading has been unsteady between this point and 40.

This signifies a power tussle between the bulls and the bears due to the bears always buying at lower levels.

MACD histogram is negative, with the moving averages trying to stay above -100. This shows an advantage to the bears.

ADA/USD

Cardano may be down, but it is far from dead.

In 2021, the crypto network had an amazing run, thrusting itself from relative obscurity to the top ranks of digital currencies such as BTC and ETH.

It is presently experiencing a flash crash, which is causing widespread market disruption.

At the time of writing, Cardano is trading at 2.1433 after getting a rejection at the top of the range at about 2.18.

We had to sell off back down towards the downside, and we came down to test the level of support at 1.98.

Cardano is consolidating within the same range.

We still have the same resistance that we need to get above at 2.18 that has been rejecting us for the last 2-3 days, and we also have to hold the significant support at 1.98.

As long as ADA is trading in between this range, there will be no significant move towards the upside or downside.

Consequently, Cardano's direction in the immediate short-term would most likely depend on the direction that Bitcoin takes.

Indicators

RSI is at 40.67 and keeping a straight face.

This means that the bulls are in control and also confirms the resistance forming on the chart.

MACD is negative; the MACD and the signal lines have moved below the middle for a few days now.

XRP/USD

Ripple dipped by 5.22% yesterday, following a 12% fall a few days ago. XRP opened the trading day at 0.87348, and at the time of writing, Ripple was trading at 0.93979.

Failing the key support levels and the 23.6 percent Fib of 0.8533.

The significant resistance level of 1.0223 has been breached.

To activate the first significant resistance level at 0.9356, XRP would have to break through the 0.8968 pivots.

However, for Ripple to return to the 0.90 level, it would need support.

Indicators

The RSI here shows a bit of indecisiveness between the bulls and the bears, although the depths show that the bears haven't fully relinquished their upper hand advantage.

MACD is also negative here, with both moving averages moving at a quickly converging pace.

LTC/USD

After an intermittent start to the day, LTC surged to an intraday high of 155.19 before a price drop sufficed.

To exceed yesterday's intraday high, Litecoin would have to break past the first major barrier at 162.

If the 152 pivots are not crossed, the first major support level at 141 will be activated.

Looking at the hourly chart, LTC seems to be reversing its negative momentum in the near run; the following few hours will provide more information on LTC's price trend.

Indicators

RSI indicates that the bears have the upper hand, with the value at 38.82. The bulls also seem to be giving a tougher resistance at lower levels indicating that they are buying. MACD histogram is also negative but seems to be getting weaker in this region.

DOGE/USD

At the time of writing, Doge is trading at 0.210300 with intraday highs and lows of 0.2146000 and 0.199900, respectively.

Doge fell below the 200-day moving average and subsequently moved into a decline, testing the key support level of 0.20. On a rebound to the 200-day MA resistance, aggressive traders may short-sell.

The closest support levels are 0.20 and 0.16, respectively, with 0.30 and 0.40 as resistance. The 200-day MA has been acting as a strong support level for the price.

Indicators

MACD lines are negative and have been so for some time now; with the histogram reaching into the positive.

The RSI is coming from an oversold position and maybe in the best shape for a breakout rally soon enough, even though the bulls still have the advantage deep in their territory.

BCH/USD

Bitcoin cash pumped by a considerable +4.11% over the last 24 hours.

The altcoin is currently trading at 527.98. The immediate support level for BCH is around 520.73.

The price of BCH was below the 20-SMA line on the daily chart, indicating that the price trend favored sellers.

The Relative Strength Index, on the other hand, was found within the oversold zone. The index has dropped to its lowest level in months. MACD's histogram flashed red bars.

Indicators

MACD index is in the negative field, proving its correlation with the rest of the market. The RSI index moved between values 35 and 40, indicating that the price will move on the same space but negatively.

Correlation

• BTC/ETH : 0.92
• BTC/ADA : 0.82
• BTC/XRP : 0.84
• BTC/LTC : 0.87
• BTC/DOGE : 0.81
• BTC/BCH : 0.85

The current dip is just a retest of the breakout. It is healthy and will mark the beginning of a new crypto bull-run.

Cryptocurrencies like ETH and LTC have established a strong bond with BTC over the last few weeks.

This implies that if a bullish trend develops soon, the market will likely continue in the same direction.

Bitcoin naturally has a ricochet effect on the crypto market, particularly with high correlation value altcoins.

Key Notes for Today

• BTC is down 37% and heading down from its all-time-high 160 days ago.
• If ETH can manage to hold this level of support for a couple of 1-hour candles, then there is a possibility that we might get a back towards the upside.
• The direction that Cardano takes in the immediate short-term would most likely depend on Bitcoin's direction.
• To exceed yesterday's intraday high, Litecoin would have to break past the first major barrier at 162.
• Doge's closest support levels are 0.20 and 0.16, respectively, with 0.30 and 0.40 as resistance. The 200-day MA has been acting as a strong support level for the price.
• Bitcoin cash pumped by a considerable +4.11% over the last 24 hours.