Is BTC/ETH about to fall off a cliff?

Summary

In this video, Mariah provides an in-depth analysis of Bitcoin and Ethereum's market movements, focusing on recent volatility and price fluctuations. She discusses key levels of support and resistance for Bitcoin, particularly highlighting the $87,000 range as a potential area for a bounce. Mariah emphasizes the importance of Ethereum's chart, noting its leading role in market trends. Despite the short-term volatility, she maintains a bullish outlook on Bitcoin and is actively looking to buy the dip. She also compares the crypto market to the stock market, providing insight into broader trends and potential price actions.

Takeaways

• 😀 Bitcoin has been volatile, with predictions about its price movement proving accurate so far, except for a minor variation.
• 😀 Bitcoin was trading in a tight range for several days, suggesting a potential breakout in either direction.
• 😀 Ethereum's weakness led the market, with Ethereum down nearly 7% and Bitcoin following with a 4% decrease.
• 😀 Bitcoin broke below a key support level for the seventh time, which is significant in terms of its price behavior over time.
• 😀 A Fibonacci retracement analysis suggests Bitcoin might find support around $87,000 if it continues to drop.
• 😀 The price movement of Bitcoin could lead to a gap fill around the $73,000 range, which would be a significant shift.
• 😀 There is an important moving average around the high $77,000s that could potentially prevent Bitcoin from falling further.
• 😀 Despite the volatility, the long-term outlook for Bitcoin remains bullish, with the current price action not changing the overall market trend.
• 😀 The Ethereum chart looks weaker than Bitcoin's, with more levels of support, which could help stabilize the broader crypto market.
• 😀 In the short-term, Bitcoin may dip to the $86,000 level, but there are signs of support from moving averages and previous resistance levels.
• 😀 Altcoins like XRP and Dogecoin are showing different levels of resilience, with Dogecoin having support at around 30 cents and XRP holding up better than Bitcoin or Ethereum.

Q & A

What was the key prediction made in yesterday's video regarding Bitcoin?

The key prediction was that Bitcoin would experience significant volatility starting around the market open. The market volatility began as expected, although with one minor variation.

What does the term 'tight range' refer to in relation to Bitcoin's price?

A 'tight range' refers to a situation where Bitcoin's price is trading within a narrow, relatively stable range for a prolonged period, which often leads to an eventual intense breakout in either direction.

What was observed about Ethereum's performance and how did it relate to Bitcoin?

Ethereum appeared weaker compared to Bitcoin, and the script notes that Ethereum often leads the way for Bitcoin. Ethereum's performance was weaker by almost 7%, which helped to anticipate Bitcoin's decline as well.

What happened when Bitcoin broke below its support level?

When Bitcoin broke below a key support level, it continued to decline further, indicating a weakening trend. This was the seventh time Bitcoin tested this level, which ultimately failed to hold.

How does the Fibonacci retracement tool help in predicting Bitcoin's price movement?

The Fibonacci retracement tool is used to identify potential support and resistance levels based on past price swings. In this case, it helped predict that Bitcoin might find support around the $87,000 level.

What is the significance of the $87,000 support level for Bitcoin?

The $87,000 level is important because it has acted as support in the past. If Bitcoin continues to decline, this level may provide some temporary stability, although it is likely to be tested again.

What is meant by a 'gap fill' in Bitcoin's price movement?

A 'gap fill' refers to a scenario where Bitcoin moves back into a price range where it spent very little time previously, filling in the price gap created by the quick movement. This is expected to happen if Bitcoin breaks below the $87,000 level.

Why does the market volatility typically increase when the market opens?

Market volatility tends to increase around the market open because it is a time when new market data and sentiment are factored into the prices of assets, leading to price fluctuations, especially in markets like Bitcoin.

What are the key differences between Bitcoin's and Ethereum's price action in this market cycle?

Bitcoin's price action is showing more vulnerability, with fewer support levels after breaking below its main support, while Ethereum has more significant support levels that may prevent further declines and help stabilize the market.

What strategy does the speaker use in response to Bitcoin's market fluctuations?

The speaker uses a strategy of having cash on the sidelines, ready to buy Bitcoin during dips. They maintain a long-term bullish outlook on Bitcoin and avoid short-term, stressful price action trades.