It is not wrong to have deep feelings of shock and despair after a terrible close to the weekend in the crypto market. Curiously, even the traditional markets are looking fairly uncertain, creating a widespread sense of FUD.
Bitcoin looked to be stabilizing at the mid $4000 mark, however somehow dropped far below that. As of writing this, it looks as if Bitcoin will rebound above the $4000 levels, but do we have the support needed for this? Well, we again have to options. The neutral perspective is to see Bitcoin get above $4k and stabilizes somewhat between $4200-4500. The positive outcome would be to see bitcoin jump up over $5000 early into next week. The more likely and negative outcome is to see Bitcoin drop around the low $3000s. $3000 will be a very difficult wall to breach, however, so anything under $3000 is very bearish.
Ripple took an even bigger hit this drop, probably due to the fact that it held its own very well in the last drop we saw last week. Ripple still doesn’t look that bad and seems to have better fundamentals than most of the other coins to date.
Ethereum dropped below our $120 point and fell to sub $110 USD. Unfortunately for Ethereum, it pretty well followed Bitcoins price action throughout the weekend. The drop was obvious considering Bitcoin dropped as well. Ethereum is becoming more bullish, however, for it has defended its value all else considered very well.
Bitcoin Cash is still a mess, marking only a year old it sure has lost almost all if its value. It is difficult to give any technicals about BCH, so I would stay away from it when the market is crashing.
We are in very uncertain times right now, not only with crypto but also with the traditional markets. It is very important that you watch carefully how the traditional markets open on Monday, for It seems the crypto market is following similar fears.
At the moment, Bitcoin is dictating this market. When Bitcoin drops, everything else drops and vice versa. I feel that it would be the more healthy option to see Bitcoin drop to $3000 for long-term vitality. That might give most of you a sense of fear, but there is a need to remove bad actors from the space, and this is one of the best ways to do that without creating an over-regulated market.