Bitcoin hits Two-Week Lows: Is it a Correction or is it a Crash?
BTC, LTC: -4%, ETH, Ripple:-7%, Stratis: -20%, and so on… The crypto market is bleeding once again, as the Etheterum and small cap coins are still leading the way lower, and traders and investors are wondering if this is the start of another huge decline or it’s the final phase of the correction that started one month earlier.
The total value of the crypro-market fell to $88 billion as of today, after reaching $115 billion a month ago. Only Litecoin and Dash are near their highs after breaking-out last week, and that divergence is one of the key components of the current set-up. But what do the charts say, is this the end of a major cycle, and lower prices are here to stay or will we see another rally soon? Let’s look at the most important charts to get closer to the answer.
Long-Term Charts of Bitcoin and Ethereum
Bitcoin, Daily Chart Analysis
The most important coin is still roughly following our projection for the current correction and until the base support near $2000 holds, the bull market remains intact in Bitcoin. More time is likely needed to reset the euphoric sentiment in both BTC and ETH, but the MACD momentum indicator already shows neutral reading and in the case of Ethereum, it’s already in negative territory.
Ethereum, Daily Chart Analysis
Should Ethereum and Bitcoin successfully test the lows of the correction near $2150 and $200, the charts would already show oversold readings, and a following break above the short-term trendlines would provide an ideal entry point for bulls. The bullish divergence of Dash and Litecoin, coupled with the low volume in the last two weeks is a positive sign and another leg higher for the crypto-market is still looking more likely. We still advise short-term traders to avoid opening new positions until the trend change, but investors could use the correction to add to their existing positions. For now, the moves in the market are still consistent with a normal correction of the several 100% moves of the spring.
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