ππ Market Crash! ETH to $1,075 and BTC to $20k?
Overview
Chart #1 - S&P 500 (SPX) Daily Chart
Chart #2 - Crypto Total Market Cap (TOTAL) 3-Day Chart
Chart #3 - Ethereum (ETHUSD) Daily Chart
Chart #4 - Bitcoin (BTCUSDT) Daily Chart
Chart #5 - Fear and Greed Index
Chart #1 - S&P 500 (SPX) Daily Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
There are early indications that the S&P 500 could be in a correction phase to the downside.Β
After reaching just over 4,600 in August, the S&P 500 retraced to 4,345 before moving up again. Yesterday, we saw it get rejected at the 4,530 level of resistance and print a bearish candle for the day.Β
If the S&P fails to move higher from this level and starts to trend back to the downside over the next couple of weeks, it could mean more downside for the already weak crypto market.Β
To the downside, the next major level of support is between 4,300 - 4,340, which is the same area where the daily ascending support line from March can be found. If 4,300 is breached, the next level of support is between 4,100 - 4,150.Β
There is also a possibility of a gap being filled further up, which was created between the close of trade on August 1st at 4,570 and when trade opened on August 2nd at 4,550. There is liquidity sitting there, and most times these gaps get filled.
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Chart #2 - Crypto Total Market Cap (TOTAL) 3-Day Chart
Chartist: Kyle
(For the chart screenshot, click here.)
The TOTAL has had a bad rejection on its 3-day chart.Β
You can see the supporting trend line, which was lost, has now had a bearish retest. This likely will lead to lower prices down into the mid-range at $960B. Closing candles into that level will confirm a shift in trend, too, as the price will have made a lower high previously and now a closing lower low.Β
If the trend shifts, the total market cap could risk revisiting the ultimate lows!
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Chart #3 - Ethereum (ETHUSD) Daily Chart
Chartist: Kyle
(For the chart screenshot, click here.)
ETH has come into a very critical level of support, and it's not looking good as the more time spent here means the probability is increasing that the price will break down.Β
If there is a break down here, our next level to watch is the $1,400 support. If $1,400 fails to bounce the price significantly, then ETH could easily revisit the $1,075 level.
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Chart #4 - Bitcoin (BTCUSDT) Daily Chart
Chartist: Sheldon
(For the chart screenshot, click here.)
Yesterday, we saw BTC get rejected at the daily 200 Moving Average, around $27,500. Price dropped quickly, retracing all the way down to $25,660, as the bears took control!
With not much buying pressure coming into the market, BTC looks very weak. Currently, the $26,000 level is holding as support. If the bulls do not recapture higher levels soon, I see further downside, possibly to test the $24,000 area, or an even deeper retrace to the $20,000 - $22,000 area.
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Chart #5 - Fear and Greed Index
The Fear and Greed Index is sitting at 40 today, indicating Fear.
The highest the index has been over the past seven days is 52, and the lowest is 38.
Banterβs Take
The market has now fully taken back the pump caused by Grayscale winning its case against the SEC. Consequently, market psychology will be shifting from greed to fear swiftly. The weekly close is yet to come, and the bulls' last hope is a super strong rally into the weekly close, ending the weekly candle on Bitcoin in green.Β
This is incredibly unlikely, but should it happen, a huge bear trap would be in place.
Stay safe my friends!
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