How Deep Can the 'DIP' Get?
Over the last few weeks, a lot has happened in the crypto space and all does not seem to be well anymore for many. Usually, the word 'dip' refers to a slight retracement in price before the continuation of a trend, however, what we've seen so far on several crypto charts suggests otherwise. Today we will take a look at a few cryptocurrencies in hope of figuring out the nearest areas of support from whence markets may experience new bullish impulse.
BTCUSD - BITCOIN
The chart above shows BTCUSD (Bitcoin) currently trading below the SMA-50 on the Monthly timeframe and approaching a Rally-Base-Rally demand zone around the $11k price zone. In my opinion, this is the nearest reliable area of support for possible consideration of a fresh bull run. If this support fails, the price could slip well lower into the $7k region.
ETHUSD - ETHEREUM
In the case of Ethereum, price is still trading within range of the 50-Moving-Average. However, in spite of the moving average support, chances are that price slips further down into the $600 region. The major determinant of price outcomes, in this case, would be the price action observed between the $670 and $360 price marks.
LTCUSD - LITECOIN
Litecoin on the weekly timeframe can be seen trading in a range between $75 and $40. There's also a trendline resistance that has just recently been touched for the third time.
A closer look at the daily timeframe shows that price may be aiming to exit the trading range once the trendline resistance is broken.
CONCLUSION
Interesting times lie ahead for cryptocurrencies as the next couple of weeks could be pivotal in deciding the fortunes of the several million investors within the space. Most of the setups above indicate the possibility of a slightly extended "dip", hence, caution is advised. To trade any of these commodities with competitive spread and execution speeds, simply log into your account or create one here.