Crypto Industry News:
Cryptocurrency market capitalization fell below $2 trillion, with Bitcoin plummeting to $ 40,500. Most altcoins suffer just as badly. Bitcoin's situation worsened more a dozen hours ago as assets plunged to a new three-month low below $ 40,000. Most altcoins are in a similar position today, with overall losses from the past three days increasing to $ 300 billion.
Alternative coins suffered as much as BTC, if not worse. Ethereum was above $ 3,800 a few days ago, while now it is just over $ 3,100, following another 3% decline from yesterday.
Binance Coin is down 5.5% and is struggling with the $ 430 price tag. Solana (-4%), Cardano (-6%), Ripple (-3.5%), Polkadot (-5.5%), Terra (-1%), Avalanche (-5.5%), Dogecoin ( -4%), Shiba Inu (-5%) and MATIC (-6%) are also very red.
The cumulative market capitalization of all cryptocurrency assets has dropped to $1,950 trillion. This means that since the correction that began three days ago, the index has lost around $300 billion.
Technical Market Outlook
The BTC/USD pair has been seen testing the key long-term technical support located at the level of $39,555. The market hit this level and bounced a little, making a local high at $42,590 (at the time of writing the analysis). The intraday technical resistance is seen at the level of $42,715, but the key short-term technical resistance is located at the level of $45,367 and $45,669, so the bulls have a quite a long road to make in order to resume the up move. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $40,000 would change the outlook to bearish again.
Weekly Pivot Points:
WR3 - $52,467
WR2 - $50,030
WR1 - $45,792
Weekly Pivot - $43,016
WS1 - $38,361
WS2 - $36,105
WS3 - $31,712
Trading Outlook:
The ABCxABCxABC complex corrective cycle is still in progress and is much more complex and time-consuming than anticipated. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).
