Cryptos Lead Stock Market And They All Point Lower

Speculative excess this cycle wasn't concentrated in cryptocurrencies, but because it is a relatively small, unregulated market, the excesses were spectacular. The charts are now pointing to serious trouble though as the prior trend fades. I think these charts are negative for stocks, negative for "shitcoins" that may go extinct, but there's nothing on these charts that is negative for cryptocurrencies in the long-term other than a possible drop below mining costs. As long as Bitcoin has a positive price, and if it is a 4-digit number, it is wildly successful. As for mining costs, this will rise and fall with hashing power, so if mining costs are higher than the price, then as with other cyclical mining industries, some will scale back operations, perhaps by not investing in the latest equipment. Proof-of-work coins are the most vulnerable to a potential drop in miner support, as are coins with hashing power controlled by a smaller number of miners.

On to the charts.

First up is Bitcoin (BTC).The blue channel at the top of the chart starts one year ago. Bitcoin stayed in the channel until it broke out in December on its final run towards $20,000. It has now broken below this channel and needs to retake $9,000 to get back into it. The next support is from the old channel from 2015 and it has an upper target below $5,000.

Ethereum (ETH). Already approaching major support near $400, after that support maybe around $150-$200 range.

Litecoin (LTC). Major support near $100.

Monero (XMR). Monero stayed in its channel for two years and even had a regular stair-step pattern (cup and handle). It is now out of its channel. I suspect this will hold up well because it is a useful coin due to its privacy.

Decred (DCR). Decred has a nice chart even if its in a downtrend. It's stayed in its channel and will follow the market lower. Major support around $22.

Ardor (ARDR). Already below support, this one could return to a penny.

Basic Attention Token (BAT). This one has support from Brave browser, probably not going to zero, but not a lot of price support if there's panic selling. If someone wants to put in a lot of stink bids on various coins, this would be one of the smaller ones to consider.

BitConnect. The future of many S-coins.

Bitcoin Cash (BCH). At support, possibly headed to $300 or lower.

Dash (DASH). This chart looks ugly. If I go strictly by the chart, maybe it bottoms at $100, maybe $10.

The rest:

No comments:

Post a Comment