The crypto market is reeling as Bitcoin fell below $7000. Ethereum is also sliding sharply. It is reviving the bearish correction mode it has been in since the beginning of the year after price tagged $1400 on Coinbase.
- On the daily chart, we can see that the latest key high was around $800, which was lower than the high around $1000 from the previous downswing.
- This suggests a lower low than the previous downswing, which was just around $400.
- There is a good chance we will see support around $400 as well, but we should be prepared for price to dip to $300 as well.
- Essentially, this means considering averaging in if you are a buyer at $400.
- To simplify that even further, just have dry powder (fiat) ready in case price does dip to $300.
- I think the 2017 bubble is still deflating, but we are almost there where crypto could start to look relatively cheap.
- I say "relatively" because something like Ethereum is still young and hard to put a value to. However, if price does come back to $300, it would be where price was before the end of 2017 bubble, and thus could be considered relatively cheap.
- You can argue that even the early 2017 run was part of the bubble, but I think by now there's enough development in this space to support ETH/USD at $300 if it gets there.