Bitcoin [$ 32,700] has been posting double-digit percentage losses for much of the past 24 hours. BTC is currently -7.59% at the time of writing and is holding on to $ 32k as support.
Historically, when price action is so turbulent to the downside, there are many divided opinions on BTC’s short-term outlook. The following chart from TradingView’s T_V_TreeTrader shows how terrible a $ 30k downside breach would be for BTC.
Below the $ 30k- $ 31k support zone there is very little support resistance up to $ 20k and the former all-time high would most likely be the next big stop.
A contrary long-term outlook is the following HamadaMark weekly BTC / USD chart on TradingView. BTC is in the middle of the current range that extends to the end of 2017.
Bitcoin’s weekly chart can mitigate potential short-term shock stress that is inevitable in any market. The BTC market is some orders of magnitude more volatile than any other market and these types of downward trends are often when “new money” enters the crypto space.
Until BTC manages to close above $ 40k on a significant time scale, the bears are still very much in control and will try to push the price lower.
The weekly trading range for BTC is $ 31,188- $ 39,151.
BTC recorded a daily candle close on Tuesday at $ 33,339.
Just a couple of days ago DOT was testing resistance above $ 30, but at the time of writing DOT is trying to hold above $ 20 because the macro outlook has changed dramatically.
With bitcoin still heavily in control of the macro outlook of the alt-coin scene for better or for worse, Polkadot has taken a step back in the past 48 hours.
This chart from Crypto-Swing on TradingView illustrates how steep the drop could be for DOT if the price breaks below $ 20.
The next stop below $ 20 is the 1.618 zone of the Fibonacci gold ratio where traders would almost certainly perceive a value at $ 13.11.
DOT is currently below the 200-week moving average of $ 24.34. To regain bullish momentum, traders would certainly like to see the price move back above the 50-day MA, which is $ 31.36 at the time of writing.
Of course, as noted, much of the short-term price action hinges on one variable – how BTC performs over the next few months. However, if BTC can find a zone to trade sideways or rise again incrementally, many of the odds like DOT will reproduce their long-term structural patterns [if they haven’t been canceled].
Polkadot’s 24-hour range is $ 19.76- $ 22.11. The 7-day LOW is $ 19.76 and the HIGH is $ 27.23.
DOT closed the daily candle on Tuesday at $ 21.68.