Nightmare Become Reality For Bitcoin And Ethereum. Do The Charts Offer Comfort?

Another day is coming to an end with crypto streets getting more bloody as the bearish dominance extends. The last 24 hours has seen a lot of retracement as most coins in the top 100s are down by more than 5%.

The image below shades more light on the extent of the dip ravaging the market. It is almost impossible not to notice how the project in red overshadows the green.

Source: Coin360

Crypto derivatives are not left out of the saga as more than $400 million got liqudated over the past 24 hours. Of the total liquidation, more than $350 million worth of long positions were liquidated.

One outlook on Cryptocurrencies to Watch stated that Bitcoin may see a retest of the $58k support should it fail to stay of the bearish sentiment and ETH could dip as low as $4,000. We’ve seen these predictions come true as both cryptocurrencies went below the mark. Do the charts offer any comfort? Let’s see.

BTC/USD

Bitcoin dipped below $57k during the intraday session. Traders were hopeful of a comeback as the most valued coin surged above $60k earlier today. Unfortunately, the price correction started at 03:00 am (UTC) when the coin lost almost 2% in one hour.

After the first drop in price, the decrease continued with little or no resistance from the bulls. The apex cryptocurrency is down by 4% since the start of the day and is currently struggling at $58k as the buyers are staging a buyback.

A previous analysis warned that the Moving Average Convergence Divergence (MACD) is blaring warnings as the fast line is about intercepting the slow and indicating an incoming sell off and concluded reinstating the importance to halt this action as the last crossing took bitcoin more than three months to recover and lost more than 50% during the time

The current low has moved both MACD lines even closer and we may see sooner than expected. With most supports above $55k crumbling, the $56,000 support could be the silver lining as there is no strong level before $50k.

ETH/USD

The past week saw the second largest coin by market cap hit a new all-time and sparked speculations that it may exceed $5,000. Unfortunately, after considering some factors including MACD, it was noted  that we ether may take longer to attain the set mark.

The mere thought of what happened over the past 24 hours could have caused many HODLer nightmares had it not taken place. ETH, like BTC, is also down by more than 4% since the start of the intraday session. The largest alt retraced below $4,000 during that time but a high of $4,361.

ETH is holding the $4k support as of the time of writing. It is vital for ether to continue holding this level as failure to do so will expose the $3,900 support for testing. The latter level is important to the largest alt as the next long term mark is at $3,400.