Crypto sells off with risk assets but is holding above first key support

Jun 24, 2020 • 2 Min Read


Crypto sell off with most risk assets - Cryptocurrencies broadly sold off today along with most risk assets raising the question of whether a bigger correction is developing. While a deeper correction is always possible it is premature to technically conclude BTC’s May-June trading range is morphing into a downtrend.

Key technical levels for BTC – The long-term trend for BTC remains positive with a move above 10-10.5K resistance needed to signal a new upside acceleration taking hold. From a short-term trading standpoint, today’s reversal was obviously not encouraging, particularly given BTC, along with many Alts, were in the early stages of bottoming/rebounding from support following last week’s pullback. However, BTC remains in a broad sideways trading range between 10-10.5K resistance and a key support band at 8.6-9.1K. A break below 8.6K would be needed signal a breakdown and downside trend reversal by establishing the first lower low since the March bottom. Next support is at the 200-dma (8.3K) followed by the 50% retracement (7.1K) of the Q1 sell-off. 

The chart in this report is only accessible to members
ETH sells off but also holds above first support - Similar to BTC, ETH reversed to the downside today after bottoming above a broad support band between 216-227 near its 62% retracement of the Q1 de...

Unlock this page with a FREE 30-Day Trial!

*Free trial available only on a monthly plan

Reports you may have missed

BITCOIN (BTC) “CRYPTO-WINTER” LOOKS TO BE OVER.  A BULLISH 2024 LOOKS LIKELY TECHNICALLY FOLLOWING A 1Q CONSOLIDATION. Bitcoin looks to be giving off strong signals that the crypto-winter that has kept most coins in bear markets over the last couple years has finally run its course.  The act of having taken the lead ahead of many cryptocurrencies in finally surpassing the 50% retracement area of its entire decline from 2021...

Tuesday produced nearly a textbook breakout which not only exceeded late June and early July highs in ^SPX 0.26% , but also successfully exceeded 3-4 month downtrends for ^SPX 0.26%  and DJIA -0.34% .  Seven of the 11 S&P Select SPDR ETF’s were higher by more than 3%, and volume was nearly 10/1 bullish on NYSE and NASDAQ, producing a “90% Up day” in volume.  Hourly charts show this breakout above the two former peaks...

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 1/1

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In