Bitcoin bearish path extends after crushing US$35,5K support

May 9, 2022 - 3 weeks ago
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Bitcoin extended its slide over the weekend and crushed the US$35,500.00 support level, which could now face a further setback and open the bearish path to the region of US$29,800.00, which was last visited in July 2021.

At present, the world’s largest cryptocurrency by market value has now fallen by 50% since its peak in November last year.

Although much of 2022 had been relatively quiet for the cryptocurrency market, Ethereum, the second-biggest cryptocurrency globally, has fallen in value, down by more than -10% in the last week.

Last week, central banks worldwide, including the U.S., U.K., and Australia, raised interest rates as they attempted to tackle rising inflation.

The U.S. Federal Reserve raised its key lending rate by half a percentage point, marking its biggest rate hike in more than 20 years.

Meanwhile, investors have been selling U.S. stocks and liquidating their positions to turn toward the US dollar index (US DXY), as it climbs to $104.06 on Friday, its highest level in almost 20 years.

Based on the technical indicators for Bitcoin, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative, while the bullish divergence is now negated.

Meanwhile, the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias. The bullish divergence is negated.

Meanwhile, the ADX (trend) indicator indicates a bearish trend.

With the region of US$29,800.00 exposed, we now need a break above the resistance at US$35,500.00 to reinstate the bullish trend and potentially give a target of US$39,400.00. Reassess from there.

Daily Chart of Bitcoin

As the market opens to a fresh week, Ethereum, the second-largest cryptocurrency, reverts to a bearish bias as the opening price tumbles triggered by the break of the near-term trendline at US$2,700.00 to post an intraday low at US$2,418.00.

Although we might see short term demand in the interim, it is assessed; however, the bears may once again pressure the market demand and increase the supply and send the market lower to the region last challenge in January 2021 at US$2,150-60.

Based on the technical indicators for Ethereum, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative, while the Moving Average Convergence Divergence (MACD) oscillator supports a negative bias, and the ADX (trend) indicator indicates it has reinitiated a bearish trend.

Daily Chart of Ethereum

Cardano (ADA/USD), the native coin for the Cardano network, closed out to its fifth consecutive week in a row on a bearish note, along with crushing the support region of US$0.74-78.

Due to its timeframe, technical traders will be monitoring the indicators as it slides into uncharted territory.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative, while at the same time, the Moving Average Convergence Divergence (MACD) holds to a weak negative signal, with the ADX (trend) indicator indicating a ranging market.

From the recent weakness, (ADA/USD) now holds to a measured move to the region of US$0.58 to US$0.62.

Reassess from there, while the resistance is located from US$0.78 and then US$0.88.

Daily Chart of Cardano (ADA/USD)

Now heading into its third consecutive bearish day, Binance, the utility token of the global crypto exchange, bearish eyes are looking to the key support level at US$320.00 to US$325.00, which was challenged back in late February.

Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds to a bearish bias; however, it is oversold, while the Moving Average Convergence Divergence (MACD) supports a weak negative signal, with the ADX (trend) indicator supports a bearish bias.

Viewing the topside, the resistance is located at US$372.00.

Daily Chart of Binance

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