Crypto Market Tumbles: Bitcoin Eyes Retest, WIF Shines Amid Altcoin Bleed

Crypto market slumps with Bitcoin eyeing retest, Ethereum consolidates, WIF breaks out and Chainlink cools off.
Crypto Market Tumbles: Bitcoin Eyes Retest, WIF Shines Amid Altcoin Bleed

Key Insights

  • The crypto market dipped today, with Bitcoin and most altcoins trading in the red.

  • The Liquidations favour the bears over bulls in the last 24 hours, with Bitcoin possibly retesting $66,580 if the decline continues.

  • Ethereum is consolidating after a strong rally from the last two weeks and is facing resistance at $4,000 with support at $3,800.

  • WIF has surged by 10% in the last 24 hours, breaking a symmetrical triangle formation, but needs to break above $3.58 for confirmation.

  • Chainlink is retreating after a parabolic rally from yesterday, and investors should approach with a wait-and-see for a possible break above $18.7

The crypto market has taken another step backwards today, considering the ongoing 0.85% correction in the total crypto market cap, and Bitcoin’s straying towards $67,000.

<div class="paragraphs"><p>The crypto market’s heatmap</p></div>

The crypto market’s heatmap

We also have most of the altcoins (including Ethereum) trading red today, in a glaring attempt at a bearish takeover.

Yesterday, we had evenly distributed liquidations that were less than $100 million.

Today, this figure has risen, and now sits at $158 million, with a clear disadvantage towards the bulls.

<div class="paragraphs"><p>The crypto liquidation heatmap</p></div>

The crypto liquidation heatmap

While the leveraged bears lost around $57 million over the last day, liquidations across Bitcoin and Ethereum majorly, have seen to the bulls losing around $100 million overall.

In sum, we can conclude that although the bears haven’t taken control of the market just yet, they do have the upper hand against the bulls in the last 24 hours.

Why Is Bitcoin Down Today?

According to the charts, we can see the reason for Bitcoin’s decline over the last day, considering the cryptocurrency’s attempt to retest its 25-day exponential moving average.

<div class="paragraphs"><p>Bitcoin’s price action</p></div>

Bitcoin’s price action

If this outlook is valid and Bitcoin is indeed attempting to retest its 25-day EMA, we can expect the cryptocurrency to decline slightly further down, and possibly retest $66,580 before we see a rebound to the upside.

Bitcoin's RSI does show that the cryptocurrency is in bullish territory though, leading us to believe that the long-term bullish outlook remains valid.

A Consolidation on Ethereum

Ethereum appears to be consolidating, after spending the last two weeks in a nearly vertical rally.

<div class="paragraphs"><p>Ethereum’s price action</p></div>

Ethereum’s price action

According to the charts, the cryptocurrency got rejected from the $3,977 zone yesterday, in an obvious attempt from the bears to prevent a break above $4,000.

Today, Ethereum has taken a step back after this rejection and currently trades at around $3,847.

The bulls seem to be holding the fort around the  $3,847 level and should be reattempting another crack at $4,000—unless, of course, we see a break below $3,800 and a decisive decline after.

Try Some DogWifHat (WIF)

According to the charts, WIF is one of the most bullish cryptocurrencies on the market and is up by around 10% over the last 24 hours.

We can see the reason for this bullishness as the memecoin’s break above the symmetrical triangle formation shown below:

<div class="paragraphs"><p>WIF’s price action</p></div>

WIF’s price action

However, WIF Isn’t out of the woods yet, and could still decline further down and retest the upper trendline of this formation around $2,972, which also happens to be where its 25-day EMA sits.

To consider WIF completely free of this symmetric triangle, we first have to see a decisive break and close above the crucial $3.58 price level, which used to be the memecoin's all-time high before its initial rally to $4.86.

What Next for Chainlink?

Chainlink entered a parabolic rally after breaking above the $16.5 price level for the first time since breaking below in a terrible decline from mid-April.

<div class="paragraphs"><p>Chainlink’s price action</p></div>

Chainlink’s price action

This rally took the cryptocurrency up by an impressive 10% yesterday alone, leaving it at an intra-day high of $18.7.

This time around, we are seeing a decline in Chainlink from this price level, with a current price of around $18.1 on the cryptocurrency.

Investors might want to adopt a “wait and see” from here, with Chainlink only being primed for re-entry if we see a break above the $18.7 price level.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Related Stories

No stories found.
Voice Of Crypto