Crypto is setting itself up for a big plunge!
Finance X Opinion
We believe that cryptocurrencies are setting themselves up for a big plunge. We feel HODL* is going to be a financial suicide for most cryptocurrencies — especially the meme coins.
*HODL — Hold on for dear life
Bears are in control!
One of the key indicators is that the market has been consistently below the 50 and 100 day moving averages. The market has been consistently trading below the trend line from the USD 60k levels and the Bollinger curves also paint a red picture.
Bitcoin was trading at USD 64k at one point and today, it is trading at USD 34k. That is nearly a 45% drop in 60 days.
The USD 29k to USD 30k prices have been the “support” levels for Bitcoin so far. However, if the crypto starts closing below that, we might see a sudden downward trigger soon!
The worst impacted will be meme currencies-coins like Dogecoin, whose rise was based on “speculation” or a Reddit trend. Cryptocurrencies like Etherium, Matic Network have solid fundamentals and should recover in the long run when the adoption becomes stronger. However, the meme coins will trend towards zero. Moreover, China has been putting more stringent laws on crypto mining.
We’ve seen multiple 4–5% drops across the crypto spectrum in the last few days. Every time the market has tried to rally, bears have taken back control. The market is already bearish but, another failure to break out on the upside might trigger a severe bearish movie.
This is just an opinion looking at the charts. What do you think?
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