The cryptocurrency market is facing a significant correction with potential further decline
The current correction in the crypto market, though substantial, is relatively mild compared to historical trends. However, there is a possibility of a more severe downturn if the market reaches the golden ratio support level of around $1.45 trillion, potentially halving its value.
Market Correction and Future Outlook
- The crypto market has already corrected by approximately 23%, breaching key support levels like the 50-day EMA and the .382 Fib support around $2.237 trillion.
- A potential further correction towards the next Fibonacci support zone of $1.9-1.96 trillion could lead to a bullish rebound, indicating a continuation of the upward trend.
- If the market continues to decline, the next significant support is expected around the 200-day EMA at $1.856 trillion.
Analysis of Technical Indicators
- The MACD histogram in the daily chart shows a bearish trend with downward ticks, along with a bearish crossover of the MACD lines.
- The Relative Strength Index (RSI) is currently in neutral territory, providing no clear signals of a bullish or bearish trend.
Update on 4-Hour Chart and EMAs
- The 4-hour chart indicates a formation of a death cross with the exponential moving averages (EMAs), signaling a short-term bearish trend.
- Potential bearish crossover of the MACD lines and the RSI remaining neutral suggest a continuation of the market correction.
Forecast for the Crypto Market
- A potential 11.6% decline is on the horizon if the market descends to the next Fibonacci support level, indicating a significant correction.
- The MACD lines are close to forming a bearish crossover, while the RSI is transitioning back to the neutral zone after being in overbought territory.
Exploring Support Levels for Crypto in Case of a Downturn
- If the market breaks below the current support range, the next significant support level is expected around $1.45 trillion, critical for maintaining bullish momentum.
- A breach of this support could lead to further decline, with significant support anticipated at the 50-month EMA around $1.23 trillion.
Identifying Support Levels for Bitcoin amidst Price Fluctuations
- Bitcoin currently sits at the 0.382 Fibonacci support level around $60,300, with potential support levels between $51,000 and $52,000 if this level fails to hold.
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