Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
Good afternoon, beautiful people of Crypto Aus! I’ll be keeping today’s article short and about Bitcoin and the general market. New dad duties are keeping me away from my PC at the moment!
On May 2 I wrote that we could see the TOTAL crypto cap lose US$400 billion, and we did. What’s concerning at the moment is that unless we see some positive action soon, there could very much be another US$300 billion wiped off. The TOTAL market cap has now lost over 50% of its value since the market peak in November.
Bitcoin Dominance (BTC.D) has risen 8% in the past week and could see more people hedging out of ALTs and into BTC in the coming weeks also, meaning your favourite ALT coin could see some more blood if that happens.
Looking at the Bitcoin weekly chart, we can see BTC found a very solid level of support at US$28,000. It’s currently holding above and, if we can get just one high-volume green candle, we could see BTC rally to US$35,000-36,000 (following the green line), which could have us ranging again for a couple months. If BTC cannot close above US$31,000, the red path is likely to play out with a further 30% drop, taking us back to the 2017 ATH of US$20,000.
Regardless of which way we go, at this stage I still believe we will see US$20,000 before we see US$50,000, as indicated by my chart below:
The BTC CME Futures (BTC1!) chart also shows a new gap to be filled at the US$36,000 level, showing the green path above as a viable option as gaps are more likely to be filled if they fill sooner rather than later.
Does all this mean crypto is dead like we keep reading in MSM? God no! In 2018, BTC dropped 84% before mooning to over 2000%. If BTC drops back to US$20,000, that’s 70% from its ATH. There is still a long way to go up!
Trade safe, use risk management and above all, stay well and positive!
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