Crash confirmed? Bitcoin & ETH 🫠

What’s up team.

Wanted to get this out to you all as we’re seeing some things rapidly develop on the charts in crypto land.

Particularly in Bitcoin and Ethereum.

Let’s dive right in…

So a few days ago we saw the bulls celebrate with euphoria as a so called “China Pump” was on thanks to the CCP injecting billions into their economy.

Bitcoin was going to break $25k and march onwards towards 28, 30, 32k.

So they thought…

We warned against a very possible rejection of $25K in our previous Substack posts and in our Discord, and we’re seeing that play out.

Looking at the Hourly chart, Bitcoin has now fallen below the 200 EMA and is dropping as we type this. Currently sitting at $23.7K.

What led us to our “bearish” approach was a stickier than expected inflation report and overall ugly macro environment.

If we zoom out on the Weekly chart, things aren’t looking pretty for our precious crypto.

We can see a close below the “Death Cross” that we also mentioned in our previous Substack posts. This is when the 50 MA crosses DOWNWARD on the 200 MA.

Looking at the 4H chart here, we see a clean break of that upward trend line, with what seems like a magnet to the 200 EMA.

A pullback to the nearest support and demand zone of $21K would not be surprising.

Break below 21K and strap in team…📉

Switching gears to ETH…

Taking a look at the 4H chart. First off, not to continue to toot our own horn here, but we called the previous leg down in ETH in our Discord on the 9th.

We sit in a similar situation today. ETH has again broken that yellow trend line and is on a crash course towards the 200 EMA.

If we break below, which we’re leaning towards, the nearest support with be the 1500 level.

Break below 1500 and watch out…🥶

No crypto analysis would be complete without looking at equities.

On the 4H ES1! chart (SP500 futures), we can see a clear break below that purple trend line and the 200EMA.

The next target being quite a bearish support in the mid to high ~3900s.

This would spell bad news for markets as a whole…

That’s all we got for today. Eyes peeled out there folks.

Oh and if you’re wondering where we trade Crypto, we’ve been using BitGet.

They’ve been awesome thus far, especially their perps exchange.

You can try them out here 👉 BitGet Sign Up

We’ll see ya in the next one.

Cheers!

-The AlgoBuddy Team