So, you may have noticed that the cryptocurrency market has taken a bit of a dive recently. Bitcoin fell below $64,000, and everything else seems to have followed suit. Are the bears back? What exactly happened? Let’s break it down without any jargon.
Summary: Bitcoin plummeted, taking the rest of the market with it. Blame it on tensions in the Middle East, some arrests in the cryptocurrency world, and the general halving drama. Or is it as simple as the bear coming back?
Just two days ago, we broke out our long $BONK position, gaining a whopping 350% in one day. We wanted to look for more long-term trades next time, but one thing is certain when it comes to cryptocurrencies: When things are going too good, prepare for the worst.
what collapsed To bring the bears back
There was panic in the market as the price of Bitcoin fell below $64,000. But why? Well, there are a few reasons floating around.
geopolitical drama
You know how things can get heated in certain parts of the world? Yeah, that happened. Escalating tensions between Israel and Iran have made investors somewhat nervous. When people are nervous, they tend to move away from riskier things like cryptocurrencies and towards safer bets. Additionally, the US President signed a bill providing an aid package to Ukraine. This has created some uncertainty about the overall Russia-Ukraine-U.S. situation.
Politicians love to ruin a good cryptocurrency pump. Isn’t that right?
Cryptocurrency crackdown
Have you ever heard of Samourai wallet? Yes, those founders got into a bit of trouble with the law. The US Department of Justice was not very happy with them and slapped them with charges related to money laundering. The news shook the cryptocurrency community and added another layer of uncertainty.
Punk after half life
Do you remember the Bitcoin halving? The supply of new Bitcoins being cut in half? But something like that happened recently as well. Historically, these events tend to destabilize the markets a bit as everyone adjusts to the new normal. Add this to the mix and you have a recipe for serious volatility. Some might argue that the upward trend of the past few months is already the market pricing in a halving event.
Naturally, if the price is already set, a correction should occur in the opposite direction.
fallout
The market did not take this news very well. Over $200 million was liquidated in the last 24 hours. Too many people are hitting the panic button. Bitcoin and Ethereum were the biggest hits, but altcoins like Solana, Dogecoin, Pepecoin, Shiba Inu, and Avalanche were no exception.
In other words, the market as a whole went down.
our trading system
Now how can you play this market?
First of all, here are some important levels to watch for Bitcoin:
- $60,000 support fee
- $52,500 for next support
- First resistance at $64,700, a critical level that needs to be recovered to sustain the bullish trend.
- $69,200 Next Resistance
We are not currently in any positions, but we are placing a long order for small leverage at $60,000, with a first take profit target of $64,700.
Second, we are keeping an eye on the Bitcoin dominance chart for hints about the start of altcoin season.
Currently, BTC dominance is rejected at the key resistance level of 57.50%. We will now test the 55% diagonal support level. If this falls below the next support level will be at 48.77%. This could mean that altcoins could outperform BTC in the coming weeks.
We should keep an eye on the 55% support level and look at a few meme coins and mid-caps while this chart is open. Some examples we are keeping an eye on are Wormhole (already taking a spot position), Ethena, Jupiter, and $WIF. If one of these forms a pattern that looks like a good trading spot, I will update you with a new blog.
what future plans
So where do we go from here? Well, it’s hard to say. The market’s recovery will depend on many factors. We’ll have to wait and see whether geopolitical tensions, the Samourai Wallet incident, and Bitcoin can shake off its post-halving gloom.
Please be patient, Crypto family. Now the bears are back. Roller coaster rides like this are just part of the game. Stay calm and keep waiting!
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