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