Bitcoin and Meme Coins Approach Critical Levels Amid Crypto Market Downturn
Bitcoin Price Tests 99-Day SMMA – Will The Crypto Crash Continue?
The Bitcoin price is currently testing the 99 Smoothed Moving Average on the daily timeframe, which has historically been a crucial support level. It is currently hovering just under the $60k mark, as denoted by the purple line in the BTC price chart below.
Prominent crypto investor Nebraskangooner anticipates that the 99 SMMA could be a possible spot for Bitcoin to stabilize the downside volatility. However, a breakdown below could lead to a broader crypto crash.
- In such a scenario, BTC could test the 0.718 Fibonacci level at $53,100, which would mean another 11% correction.
- BTC is already trading below several key support levels, including the 4-hour 200 EMA, the 200-day SMA and the 200-day EMA.
- Ideally, swing traders could wait for a reclaim of these levels before scaling into a long position.
- However, sidelined investors can buy the dip if the Bitcoin price secures a daily close above the 99 SMMA.
As such, experts remain bullish on BTC in the long term despite the short-term bearish trajectory.
Altcoins Face Key Tests As Well
A few altcoins have delivered outsized returns despite Tuesday's crypto crash. For instance, Sui (SUI) is up by nearly 4% today, bringing its monthly gains to over 120%. SEI, TAO, and Dogwifhat have also posted substantial gains over the past week.
However, smart money investor HornHairs anticipates that these strong coins will soon face crucial retests in the 4-hour timeframe, particularly the 200 EMA and 200 SMA levels.
- First 4H EMA retests coming up after the first upmove of these fresh uptrends for strong coins like $SEI, $SUI, $WIF, $TAO.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.