CRYPTO CRASH CONTINUES! | Danger Signals for Bitcoin Ethereum Cardano Solana Atom & Luna
Only in no way should it be considered financial advice, im, not a financial advisor trade and invest at your own risk. Whats up and welcome to the channel where chart reading is simplified for you, im, michael and in this video im looking at the falling crypto market and how bad this could get, but its not all bad news, so lets check the charts. Just a quick recap on the total market cap and yesterday we were looking for 1.8 trillion as being an important level for the total market cap to hold, and we can see that it has obviously spiked down and its trying to make its way back on the Close it doesnt close back above there yet, but thats okay, like i said its, not all bad news, because if were looking at a slightly shorter term level, it has found support on the 50 at 1.76 trillion. So this is kind of the level that im looking out for to now hold up, ideally id like to see it get back above 1.8 trillion and close. But the fact that its still finding support on an important 50 level is good news for me. In the short term, theres also a common technical analysis pattern. That old tops become new bottoms and we can see some tops around here and if we go to where the market is now, they could potentially support the market and make this a new bottom. Its still very early, its too early to call that just yet, but the fact that weve got a 50 level and some old tops that could potentially hold the market up is good news for me.
In the short term, checking back to bitcoin, we had a groundhog day yesterday were looking at the market before the close and were still seeing some weakness and a pattern emerging. That would likely send us down once again, which is what weve had we couldnt get back above 44k and the lows broke and on its way down, bitcoin went so what now well its not in a terrible position, its definitely not in a great position, but its Not terrible were finding some support on 50. I was buying a little bit yesterday in some of my longer term accounts, because there was some enough reasons for me to think that hey, we might be getting some longer term support now it hasnt been proven yet, but thats okay ive got a plan, no matter Which way it goes, but weve got this 50 level at 40, 800 and also some old tops. So just like the total crypto market cap were looking at old, tops becoming new bottoms so provided we can hold these old tops at around that 40. 800. You know a bit below isnt too bad, then that narrative still holds true, but if we do continue to break down and im not finding mass amounts of support just yet because were still creeping and hovering around there. So if this level does start to break down, then im looking for the 36s, maybe high 36s well just have to wait and see im just taking this day by day.
The markets move very quickly and were in that period of the time where there is a lot of volatility and fast moving markets. So for me it pays to stay nimble and just see what the markets telling me now ethereums concrete slab is well and truly broken. Now, if you dont know what im talking about check back a few of my videos, where were looking at this as being the foundation that ethereum needed to hold to kind of stay strong? And we kept getting cracks in that foundation and were saying that its going to have to eventually break through weve got another one. Yesterday we did close week and we went back into the weak part of the 50 level and down ethereum went so all the signals were there. We could see the weakness showing up over and again and as soon as some more lows got broken down, ethereum went so now, looking at where support could come in. Of course, weve got our 50 levels that we want to watch, and the kind of bad news for ethereum is. It is still weak its weak on its major and its weak, on its slightly less major, so were gon na have to see if just some bind comes in, weve got a minor top here, and here sometimes monotops can call the mark at lowes, but relatively speaking, Id rather see them to be a bit more than just these minor tops im looking at here, but you never know ideally id like to see some closers back above 2800, but provided we still hold 2600 thats, not too bad in my book, breaking back below 2600.
Would be a danger sign and we could be getting 2 000, ethereum or less, but once again were holding this 2600 looking for closes above 2 800. lets take this day by day and see how ethereum ends up over to ada, so weve seen sub 2.80. Once again now the danger for ada is its back in its weak part of this 50 level, and it looks like its probably going to close below, but just like bitcoin and ethereum, and i didnt point it out. We are getting an increase in volume, so there are a lot of players getting active at this low price in af relative to what it has been the last couple of months. So now, if the support can hold up thats telling me that its more so bag holding than short term profit, taking and weve, obviously got some old tops to look back to as well thats supporting the market in the short term. So lets just see if these can hold up for now. Where is the bit like ethereum? If we do start breaking down from that, you know two dollar ada. We could be seeing about a dollar seventy, maybe even less, but once again just taking this as it comes so the price i was looking at for solana was 130 bucks. I really wanted to see that hold up for solana to remain in a relatively strong position, but it gave way yesterday and it has been breaking down a bit.
But we are getting some strength into the close. So, just over an hour to go to the close lets see where it closes and if you can get back into the strong part of my support and resistance line. If solanas unable to get back above 130 bucks and consolidate there im thinking its quite weak and we could be seeing sub 100 once again, big calls, but were just gon na, have to play this day by day, because the markets are moving quite quick and theres. A lot of volatility so for solana looking for a close above 130. Otherwise, we may see some continued weakness im, throwing a couple more into the mix today, because a lot of markets are moving and i want to see which ones are stronger and weaker compared to the rest. Now ive got adam cosmos up on the chart now has been falling relatively hard, but its holding in a much better position than some of the other crypto. You can see it wasnt. All time highs. It started to move down now im, just looking for where supports going to come in. If were just looking at some old tops and bottoms, then then thats, you know one kind of way to look at where support and resistance could come in were finding some support on some old tops. Lets see if these hold up really just like we looked at with solana being weak at over 200 bucks made an all time.
High broke back below also cardano being weak, it had 3.10 broke back below and its theyve both fallen a lot since same thing with cosmos. I want to see it hold above its old all time highs and if it does that itll stay in a relatively strong position, reloading the fuel tank to have another move not too much more to add on cosmos. Its still on its way down were looking for support. The markets are moving quick, so im just going to have to be nimble and see if it can continue to hold above its old tops. Luna is the next one i want to look at and when we started looking at this in the investor, accelerator jason and i on our weekly market updates, were looking at it around this period here, and we identified some potential danger with the pattern that luna was Forming and that it could whipsaw around and thats exactly whats happened, weve had a whipsaw down and up and now were on our way back down. So now it is just the same game as the other crypto that were just looking for support, but the key thing is just to be aware that there are signals out there and patterns that turn up. That can give us some warning signs as to what the volatility is going to be doing and its pretty clear that we did have a mass amount of volatility so now lunas on its way back down and, of course, just looking for support and the two go.
Tos for me, especially when starting out theres, obviously many more things that we can do to tune this up and get better, but for the purpose of this, what were looking at really is just some 50 levels and some old tops and very broadly speaking, weve got Some old tops around that 22 bucks, 23 bucks. So if luna can continue to hold above this, then that would be a very, very positive sign for me that luna is refueling the tank, and this here is just nothing more than a blip in a bigger move to come, but that could be weeks months away. If we start to break back below the all time high, then its kind of just a waiting game to see when the strength comes back into the market, because, if that happens, it could be quite a long period of time kind of see what i mean we Had an all time high in luna back here in march 2021 march of this year, and what happened next was it went back below its all time, high started to go sideways and down quite a lot. If we look at that in terms of percentages, it fell by seventy percent over seventy percent. Eighty percent – there you go, and what also is important to note is that it took whats that 150 days for that to get back into new all time highs 150 days. Quite a long period of time, but if youre in it for the long game and that doesnt matter, then hey you, do you and follow your plan.
But what im looking for like ive been saying is yes for it to hold above its old all time high, because if it breaks below, we could be in for another lengthy period and quite a big drawdown before getting to fresh eyes. Lets see how this one plays out, so there you have it guys theres, a few more markets for you today, because the markets are hot or at least theyre burning. Hot and people are dropping it like hot potatoes, but now were looking for, where support could come into the market, got a couple of things that im watching out for key prices and all the rest of it and obviously weve seen a lot of volatility across the Board in more than just crypto, mainly just the stock market, so were going to have to see if this isnt something thats going to continue into the fourth quarter or if some support does come in soon to really hold the market up and at least consolidate. It may not go straight up, but if we can at least hold up and consolidate, thatll, be a positive sign or obviously maybe were down for the fourth quarter too, were just gon na have to see how that one turns out still a long way away and Im taking this day by day for now, so as always, i hope you found this update. Useful drop me a comment, get the youtube numbers up and until next time ill catch.