WATCH OUT BELOW: Major Cryptos Falling To Key Support Levels

June 23, 2018

After another negative press release this morning, the major cryptocurrencies fell towards crucial support levels.  According to a Zerohedge article, quoting CNBC, Japan’s chief regulator launched a probe of crypto-exchanges, prompting the largest to halt new account creation, thus sending the crypto market considerably lower.

The press release stated that Japan’s largest crypto-exchange, Bitflyer, needs to make improvements to its business model, especially in regards to anti-money laundering.  While the press release had a negative impact on the crypto market, it will likely not be a big issue going forward.  So, the cryptos may recover and shrug this newest downturn as just more FUD… Fear, Uncertainty, and Doubt.

Or, the crypto market could continue lower towards crucial support levels.

Today (06/22/18), Bitcoin fell 9%, to a low of $6,100:

Crypto investors need to understand that there aren’t too many assets that fall 9-10% in a day.  However, Bitcoin is actually holding up better than the other cryptos.  For example, Litecoin was down more than 13% today.  For cryptos to be taken seriously, they cannot continue to experience this sort of daily trading volatility.

Now, some of the Crypto-Aficionados are saying that the cryptos are being manipulated by the POWERS-THAT-BE.  Well, I thought one of the key reasons to own cryptos was due to them being decentralized… thus not subject to manipulation.  However, all assets can be subject to manipulation, even by the “Whales” who control a large percentage of Bitcoin.  So, manipulation can push prices higher or lower.

Regardless, it seems as if the crypto market will experience more selloffs in the future as the largest bubble in history continues to deflate.

I say this because even with the positive news releases on the crypto market, (SEC ruling that Ethereum was not a security), the crypto prices continue to trend lower.  Thus, the negative press has more of negative impact on the crypto market than the positive news.  We can see this taking place in the following charts.

I started warning about Bitcoin and the Cryptos late last year in my article, SELLING OUT OF PRECIOUS METALS & BUYING BITCOIN… A Very Bad Idea.  At the time, Bitcoin was trading at $8,000, on its way to $19,000.  Since its peak at the end of 2017, Bitcoin has fallen nearly 70%.  Today, it fell to a low of $6,100, but the critical technical level is $6,000:

Bitcoin has fallen below its previous low of $6,468 on March 26th.  The last time Bitcoin was trading below $6,100 was last year on Oct 16th.  While $6,000 is the next key support level, the important psychological level will be $5,000.  If Bitcoin falls below $5,000, it could head back towards $3,000 quite quickly.  Not only would this be bad news for Bitcoin HODLers, but it would also be detrimental for the Bitcoin miners.

However, it is possible that Bitcoin could shrug off this bad news and move higher for a while.  But, I doubt this would last long as the overall trend seems to be lower.

Now, even though Ethereum is experiencing a big selloff today, it has a bit more breathing room to reach its next key support level.  Etheruem is now trading down 11% at $470, but needs to drop below $400 to puncture its key support level:

As we can see in the chart, the Ethereum price touched $400 three different times.  Well, the price was actually $360, but I am just using $400 as a key psychological support level.  If Ethereum falls below $360-$400, then its next significant level would be $200.

The third crypto that is very close to a critical support level is Litecoin.  At it’s low today, Litecoin fell by more than 13% to $83.  This is extremely bad news as Litecoin’s key support level is $80;

Litecoin is closer to its key support area that Bitcoin or Ethereum.  Currently, Litecoin is down 72% from its high of $300.  If Litecoin falls below $80, then it could quickly fall to its next support level of $50.  But, as I stated, nothing goes down in a straight line.  So, the entire crypto market could experience a correction higher for a while.

Another major crypto that is also very close to its key support level is Ripple.  Ripple, was by far, the biggest bubble in the group.  At its peak, Ripple touched $3.00 and is now trading at $0.50…  83% lower:

I highly doubt Ripple will ever surpass its previous high of $3.00.  If you were lucky enough to purchase Ripple at a fraction of a penny in 2017 and sold it anywhere above $0.50, you did very well.  However, if you continue to hold onto Ripple as it falls back towards a penny, you have my condolences.

Now, I want to make something perfectly clear.  I am not anti-blockchain, but I am anti-bubble.  Yes, it is true that some of these cryptos could survive and be around in the next 5-10 years, but I don’t have a lot of faith in highly complex technical systems when the world is getting ready to hit an ENERGY BRICK WALL.

Our highly complex technological infrastructure takes a great deal of energy to maintain.  Unfortunately, we are running up against the limits of our energy sources right now.  Besides the fact that the cryptos are still in the process of deflating from their bubble highs, we will not have the energy to maintain an advanced cryptocurrency system in the future.

I posted this chart on the “Fragile Nature of Currencies.”  I highly recommend you understand the fundamental reason to own physical gold and silver to protect your wealth in the future as they are the strongest and most durable currencies in the world:

Even though a gold coin can wear its face off after 35 years of use, the coin can be remelted and minted into a new coin for another 35 years.  However, the typical Federal Reserve Note only lasts eight years on average and the servers that run the Digital Banking system only last four years.  With the average Bitcoin miner lifespan of 2 years, we can see that a Gold Coin, versus all others, is the best quality store of value.

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Originally posted at https://srsroccoreport.com/watch-out-below-major-cryptos-falling-to-key-support-levels/

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