Technical Update - Crypto bubble imploding. Long way to solid ground Technical Update - Crypto bubble imploding. Long way to solid ground Technical Update - Crypto bubble imploding. Long way to solid ground

Technical Update - Crypto bubble imploding. Long way to solid ground

Cryptocurrencies 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

The Crypto currency bubble is collapsing. Bitcoin leads the way lower and has a long way to find solid ground. Ethereum outperforming Bitcoin but looks heavy too.
BTCUSD could drop below 10K and ETHUSD is looking at 500.


BTCUSD is in a confirmed down after breaking below 17,567 and seems to be set for a test of strong support at around 12,320 close to the 1.618 projection level at 12,841 of the July-August correction – blue set of Fibonacci’s.
However. BTCUSD could drop further to the low back in August 2020 prior to BTCUSD almost went vertical at around 9,813. That level is close to the 200% or 2.00 projection of the 2022 July-August correction at 9,920.
RSI has broken its rising trendline strongly indicating lower levels for bitcoin.
BTCUSD needs to close above 25,215 to demolish this bearish picture.

  

Source: Tradingview and Coinbase

ETHUSD has formed a Shoulder-Head-Shoulder like formation, not the most textbook perfect one but an S-H-S pattern nevertheless.
If ETHUSD is to travel the same distance after Neckline break out as from the Head peak to the Neckline it will go into negative.
But with this more irregular Shoulder-Head-Shoulder pattern the potential target is likely to be more modest.
A more plausible downwards target would be that ETH it travels 61.8% of the Head peak to the Neckline distance i.e., to around 615 as illustrated by the two vertical orange arrows.
ETHUSD almost reached that level during the April to June sell-off before a correction set in.

However, it could still reach that 615 - and quite possibly lower. 
ETHUSD is in a confirmed down trend on daily and weekly chart bouncing from the 0.786 retracement of the July-August correction. Support at 879.80 and if that level is taken out there is no support until the upper level of the consolidation area from 2020 between 489 and 290.

489 is also close to the 1.382 projection of the exhaustive peak in November 2021 – blue set of Fibonacci – and the 1.382 projection of the July-August correction – green set of Fibonacci’s.
However, ETHUSD could collapse to the lower level of the consolidation area around 290 possibly overshooting to 1.618 projection of the July-August correction at 167.90.
For ETHUSD to reverse this picture scenario a close above 2032 is needed.

Source: Tradingview and Coinbase
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.