Weekly crypto-market analysis from Geco.one 24.05.2021
Recent days have brought an authentic sale on the cryptocurrency market. As a result, the prices of the vast majority of virtual assets fell by several dozen per cent. This depreciation caused the price of Bitcoin to drop by more than 50 per cent, reaching the level of $ 30,000, which was the lowest level since January this year.
Looking at the Bitcoin quotes, we notice that the price of the oldest virtual currencies has fallen to the technical support of $ 30,000 in recent days. Although there was a demand reaction around this level, the subsequent increases did not last too long, and we have been seeing drops again for several days. Therefore, it cannot be ruled out that the BTC price will drop to $ 30,000 again soon.
If this support was also defeated, then one should be prepared even for the possibility of a drop below $ 20,000 for BTC.
The current situation on the Ethereum market is also not very optimistic, the price of which has dropped by more than 60 per cent in recent days. Thus reaching the area of technical support of $ 1,950.
Although we observe slight increases in the morning today, it cannot be ruled out that this tendency is only a kind of market recovery. This fact means that after this correction is completed, the price of ETH could fall back to $ 1950, or even to $ 1400.
The price of Bitcoin Cash is also very similar, as the price has recently dropped to support $ 465. Therefore, even though there was a demand reaction there, the current increases may turn out to be only a correction, after which the rate will return to its dropdown and could fall below $ 465, or even to $ 370.
The current situation on the 60-minute interval also speaks in favour of the pro-downturn scenario, where we notice that the BCH is currently trading around the local resistance of $ 465. Even if this zone were to be broken, further appreciation could be limited to $ 745 or possibly $ 860.
However, considering the relatively low dynamics of this trend, it seems more and more likely that it is only a market recovery, after which the BCH will slide lower.
Looking at the Litecoin quotes, we can see that its price has dropped by as much as 71 per cent in recent days. Thereby overcoming several significant levels of support. However, this depreciation did not stop until around $ 120, where there was a demanded response this morning.
However, it cannot be ruled out that the increases we are currently observing will be limited only to the re-test of the recently defeated support (now resistance) of $ 167. If only in the vicinity of this zone there is a more significant supply response again, the LTC rate could, in turn, slide to the area of $ 120, or even to $ 95.