After a 48 hour beatdown the likes of which most crypto bulls have never experienced it looks as if a bottom, at least for the short term, has been put in place:
Bottoming tails on the last two daily candlesticks signify strong buying support below the $11,000 level; a move back above $11,800 would give strong confirmation that a bottom has been put in place. However, bottoms such as the one we put in place this morning at $9,220 have a strong tendency of being retested at some point down the road. One final note about Bitcoin, today’s low equated to a ~53% drop from the peak, this is Bitcoin’s largest percentage decline since the 85% decline from November 2013 to January 2015.
Meanwhile, Ethereum experienced a ~47% decline from its January 13th all-time high of $1,420 to this morning’s low at $761. Ethereum bottomed almost exactly at its rising 50-day moving average which also happened to form technical confluence with a key Fibonacci level and previous resistance.
The correction in Ethereum has all the hallmarks of a violent bull market correction (even more so than Bitcoin which stopped making new highs a month ago), and the downside stretch was plenty deep enough to clear the decks of weak hands, yet the long term uptrend remains very much intact. $1,100 is now the next key resistance level, above $1,100 and Ethereum could be ripe for a squeeze to $1,300 before the next consolidation takes place.