It’s been a tough week for cryptocurrencies since getting close to US$600 billion in total market capitalization on Sunday night; cryptos have fallen as low as US$435 billion today as Bitcoin has broken down below $9,000 to its lowest levels since November 30th.
However, all is not lost and there could be an attractive buying opportunity setting up very soon:
The $7700-$8200 zone represents strong confluence including the rising 200-day moving average (purple). Buying as close to $8,000 as you can while using a ~10% stop-loss looks like a good strategy for a trade right here.
Despite the broader correction in the crypto sector Ethereum is still in a strong uptrend. The key downside level is now $950, a breakdown below this level would set up a further downside move to at least $800. On the upside a breakout above $1200 would target a move up to $1600+ (all-time highs).
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Cryptocurrencies are extremely volatile and it is possible to lose your entire investment. It’s your money and your responsibility.