This week I will be taking a look at the potential technical areas that a number of cryptos could start to visit if the ongoing pullback from the $36,000 level for Bitcoin starts to gather some downside momentum.
I think a good place to start will be the crypto total market cap chart as this normally offers the most clues for broad-based crypto moves, and especially Bitcoin.
Source: Tradingview.com
A good place to start is usually divergence. With CMC chart we can see negative divergence extending down to $1.19 trillion.
This is also the spot of the 2022 rebound high and breakout spot this year. A revisit of this area is very likely.
Source: Tradingview.com
Interestingly, Gann Theory really highlights the market should not go under $1 trillion, with upside targets at $1.6 and $1.9 trillion.
Back to Bitcoin, and I think $32,700 to $32,000 are reasonable pick-up area if we see a protracted decline under $34,000 in the next few weeks.
Source: Tradingview.com
It's not unthinkable that Bitcoin could tag $31,000. but for me a $32,000 to $42,000 play seems the most likely.
Traders buying at $34,000 with a wider stop loss and braver than I could also target the $44,000 level I feel.
Source: Tradingview.com
Genuine fears exist that if BTC is going to $44,000 then why sell it up there, especially if we are going to see $80,000 or even higher levels achieved during the next up cycle.
Source: Tradingview.com
Moving to Ethereum and a final dip to $1,700 would seem likely if BTC hit $32,000ish. I would be comfortable buying around that area with a stop loss under $1,550.
Source: Tradingview.com
My upside targets would be $2,300 and $3,000 if we were to see BTC hitting $44,000. ETHBTC does not look good right now technically.
Source: Tradingview.com
And finally, covering the usual favorites LINK, AVAX, SOL, DOGE I would say simply that a 7 to 10 percent correction can happen and let the crypto market cap and BTC guide you.
Source: Tradingview.com
Source: Tradingview.com
All the mentioned coins could easily double or triple or even 10X in value in between 2024 and 2025.
The halving, ETF approvals and another election in the United States are bound to generate significant volatility for crypto in 2024.
