Markets continue to bleed, fear grows, and investors forget what it feels like to actually make a profit. So what does the future look like for the cryptocurrency market? Let’s look at Bitcoin, Ethereum, and Solana through high timeframe charts and see what might happen soon.
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Bitcoin turned into a downward spiral at the end of 2021 and has been heading south ever since. This selloff is causing a lot of fear and uncertainty, along with a falling stock market. However, Bitcoin is very cyclical; the same way it can go up by 1,000 percent, it can go down by 80 percent. Now Bitcoin is down around 60% from its top, and people are starting to look for a bottom. The fear and greed index is at its lowest point, so investors and traders are terrified to buy crypto at this moment.
Fear and greed index, Source: alternative.me
That is why it looks like the bottom is slowly forming, and we will probably see a reversal soon. It doesn’t mean that Bitcoin will go to a new all-time high level this year, but at least some form of the pullback might happen. The selloff could stop at around $24 000 to $25 000, and the movement upwards by about 50 percent could come in the upcoming weeks. We have officially entered a summer season, so there might be lower volatility. Still, if there’s any potential movement coming, it should might upwards.
1D chart of Bitcoin, Source: Author’s analysis, tradingview.com
It’s important to remember that Bitcoin is ruling the whole crypto market, so if Bitcoin goes down, so do other cryptocurrencies. In order to have some form of timing, it’s convenient to look at more tokens. Ethereum just recently broke important support from last summer, so some continuous downwards movement to $1,000 is possible. But that only means markets are looking for a bottom, and there might be a rally soon.
For now, it’s risky to buy Ethereum, but if it gets to $1,000, a movement to $2,000-$2,500 is very possible in the next few months. Ethereum will definitely test that trend line in the chart; it’s only a matter of a few weeks or months. The recent report from PwC claims many hedge funds expect a price recovery of the whole crypto market as well, so everything suggests the price recovery is coming.
1D chart of Ethereum, Source: Author’s analysis, tradingview.com
Solana became of the most popular cryptocurrencies, and that is for several reasons. Solana is similar to Ethereum, however, it is much much cheaper in transaction fees and significantly faster. That’s why Solana skyrocketed from only a few cents to $260. However, the price is down around 90% from its top, and it’s forming a bottom.
Solana is headed towards very strong support from the last summer, and there’s a very visible divergence forming that could help the token to bounce upwards. Some consider 20 dollars as a good entry point, because there’s a possibility to grow to at least $60 or even $80 in the upcoming months. So, get ready because Solana summer may finally be on the way.
1D chart of Solana, Source: Author’s analysis, tradingview.com
The whole crypto market has been through a lot this year, and some form of price recovery is very logical and expected, even though some people think the market will die. Just wait for a retest of important supports, and then you should see a strong bullish activity that will end this strong bear market.