Crypto Frontline

BTCUSD (Coinbase)

Source: TradingView

Nobody wants crypto anymore, or at least that’s what the current price action across the entire market is suggesting. In the case of Bitcoin, things evolved from bad to worse, considering the price breached below the key support area around $40k.

As we have anticipated, it was a strong enough reason for sellers as the price dipped lower to levels not seen since July 2021. Looking at the bigger picture, Bitcoin looks poised for more weakness in the following days, and our target near the $30k remains in play.

However, we should not rule out a corrective move, given the price is overstretched, far away from the daily 20 EMA. A push higher towards $40k should be treated as a new selling opportunity, as long as buyers are unable to break and hold above that key area. Risk sentiment is weak across the board, and since tech stocks are also under pressure, crypto should keep up with the same positive correlation.

ETHUSD (Kraken)

Source: TradingView

Moving ahead to Ether, the same overshoot lower can be spotted. The price found some short-term support near $2.4k but, it’s not enough to suggest the bearish leg lower has ended. Still, looking at the daily RSI, conditions are oversold, which is why a temporary bounce can occur next week.

Even if that’s the case, heavy selling should resume around $2.6k or $2.7k. We think selling might ease a bit, which can bring the price closer to the 20 EMA. But, overall, the bearish trend remains intact and our mid-term projections see ETH heading towards sub 2k levels. More specifically, $1.8k and $.16k are critical support areas where we think there could be more aggressive buying.

A new FED meeting will occur next week and if the Chairman will stick with its dovish stance during the press conference, risk assets, including Ether might profit in the short-term. It won’t be enough to stage a larger rally, though, given interest rates hike projections remain intact.

BNBUSD (Binance)

Source: TradingView

Considering the selloff is spreading across the entire market, we can analyze BNB to see the overall risk sentiment. It should be no surprise the price breached below a triangle pattern we’ve talked about in the past and that’s a bearish signal, even though BNB can bounce in the short term.

Now that the technical break occurred, we think the price should continue lower at least towards $230, where some higher buying interest can emerge. Another support is located around $320, a September 2021 swing point, which we believe has a lower probability of amassing a large number of bids.

In line with the broad market, BNB has a bearish tilt, given a lower interest in crypto is not positive for one of the largest exchanges. Only a breakout above $500 can revive long-term bullish hopes, but at this point, that is the least-likely scenario. It’s a highly difficult environment to trade in, and we advise all our readers to assess their exposure. Trends can overshoot and take you by surprise.