Cryptocurrencies have been in a bear market for months but this week’s action took the majors below previous price support levels, an unfortunate event for those who own the stuff. A support level is where buyers entered the market at earlier dates, enough to stop the selling. This time around, they failed to show up.
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Here’s what the bitcoin daily price chart looks like now:
That horizontal red-dotted line represents the level at which buyers appeared in early May to provide support to the bitcoin price. You can see how Monday’s intense selling took the cryptocurrency below that level on heavy volume and in a relentless kind of fashion.
Here’s the bitcoin weekly price chart now:
This selling takes the coin below the June/July 2021 support levels, where the May, 2022 buying had seemed to come in and close above. What’s the next level of support? It might be that November/December, 2020 area where some selling came in before bitcoin took off again. Lower than that and chart analysts are talking about maybe 12500.
What is notable is how the cryptocurrency keeps taking out the support levels on the way down. That’s what the droppage below the red-dotted lines represents and it just keeps happening. Monday’s high volume selling took Ethereum even lower but the support had already been broken days earlier.
This is what Ethereum’s weekly price chart looks like now:
The selling is substantial enough to take this cryptocurrency to well below even the June/July support area near 1750. Ethereum is already back into the late 2020/early 2021 levels near 1200. Damon’s half-time commercial on behalf of crypto is likely to go down in financial history as one of the great contrarian signals.
Here’s the XRP
The penny stock of the major cryptocurrencies, also known as Ripple, took out its May low on Monday. Note that XRP is down from the December, 2021 high of $1.00 to the current price of $.31. It’s not necessary to perform too much math to figure out what kind of a percentage drop that is. Volatility is a feature of crypto and this one’s a good example to study.
The weekly price chart for XRP looks like this:
All the way up and almost all the way back down is what I see on this one. Ripple made its way to almost $2.00 in April, 2021 when all of the cryptocurrencies found tops. What a freefall from there. Now trading at $.31 and note how it’s dropped well below the $.50 previous support level from June/July 2021.
What an era.
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Not investment advice. For educational purposes only.