Crazy crypto week: Digital Markets slide, altcoins under pressure

It seems that Crypto Markets are caught in the middle of lunatic flows.

Just yesterday, record Bitcoin prices were making headlines, with the rest of the digital asset market following suit.

But today, things took a sharp U-turn to the downside — with most altcoins getting rejected harshly after what looked like the start of another euphoric leg higher.

Mentioned in yesterday’s article on the crypto initiator, Bitcoin is trading around the $121,000 technical level and may soon test the $120,000 psychological support, a zone that could trigger renewed anxiety among late buyers who chased the highs.

The total crypto market cap, which had broken new records by roughly $100 billion, has now swung the other way — down about 4% (or $170B) on the day.

That reversal is weighing heavily on smaller coins, many of which got bamboozled by the ecstatic momentum just 24 hours earlier.

The picture is bloody!

While sentiment might take a hit from the sudden volatility, the broader picture remains constructive. Most altcoins are still hovering near their cycle highs, showing no clear signs of capitulation — at least not yet.

Let's watch levels for a few altcoins, namely: ETH, SOL, XRP and BNB (one of the only winners of the current sessions).

Since our previous analysis of the second largest crypto , Ethereum broke to the upside after a huge and sudden rally.

However, as prices reached the ATH resistance (between $4,750 to $4,950), sellers came in strong taking the crypto down 6.50%, also breaking the steep upward trendline.

This gives an overall rangy picture for Ethereum for the second time since July, with sideways action not being as bad as an overall downtrend.

Let's see how sentiment evolves throughout the week for cryptos and if buyers step in at support ($4,300 is the next key level in line).

Levels to place on your ETH Charts:

Support Levels:

• $4,200 to $4,300 consolidation Zone
• $4,000 to $4,095 Main Long-run Pivot
• $3,900 8H MA 200
• $3,500 Main Support Zone

Resistance Levels:

• $4,753 Daily highs
• $4,950 Current new All-time highs
• $4,700 to $4,950 All-time high resistance zone
• Potential main resistance $5,230 Fibonacci extension

Failing to break the upper bound of the upward channel with a triple retest, the picture for the third largest crypto could be bleak.

The intermediate high came at $237 which fails to surpass the $253 peak reached in end-September. A lower high hence has to be taken into account, despite a very strong performance from Solana.

It seems that a broad positive mood will be required to breach new highs, with buyers now having to break above the $237 level for better technical prospects.

Also, watch reactions at the pivot zone currently getting tested. Rejecting higher means a simple correction, while breaking lower would entice more profit-taking.

Levels to keep on your SOL Charts:

Support Levels:

• Resistance turned pivot level $218 to $220
• Support zone $200 to $205
• Recent lows $191
• $185 higher timeframe momentum support

Resistance Levels:

• $237 Most recent highs
• $235 to $240 mini-resistance and Higher bound of channel
• $250 to $255 main resistance
• $290 to $300 all-time high resistance ($295 ATH)

The Ripple is still stuck in its $2.70 to $3.20 range, with sideways action dominating the charts and rejecting a breakout hypothesis.

This chart is an example of why some traders and analysts prefer to watch support and resistance levels break rather than trendline, however, both can be valid and heavily depend on the price action and trend.

Prices are now testing the $2.80 Support and reactions there will also have to be watched closely, with the 8H RSI moving in the bearish territory.

Levels to keep on your XRP Charts:

Support Levels:

• $2.80 mini support (immediately testing)
• Main Support - $2.60 to $2.70
• Next key support between $2.20 to $2.30

Resistance Levels:

• $3.00 Major Pivot Zone
• $3.10 to $3.20 resistance
• Previous all-time Highs - $3.39
• Current ATH resistance around $3.66

Binance's coin is moving exponentially higher and holding the market together as it seems.

BNB has almost doubled in value since the beginning of July and its rise looks like one of a memecoin, although its fundamentals are actually solid.

Then again, the rest is to see if it can consolidate at current elevated levels and establish itself as another crypto that is valued above $1,000 on the longer run.

Keep an eye if bulls can close today's session above $1,300 and if they manage to break a new record throughout this week to maintain its very bullish trend.

Also keep in mind that BNB tends to be a late cycle bloomer, but also holds a strong role in the overall crypto market growth during the mid-cycle.

Levels to keep on your BNB Charts:

Support Levels:

• Short timeframe Pivot Zone $1,200
• $1,000 Major higher timeframe Pivot, acting as support
• $790 to $850 Key Support
• $690 to $720 Major Support at 2021 highs

Resistance Levels:

• $1,374 Current ATH and Daily record
• $1,475 Fib-Extension potential resistance

Keep your mind and eyes open as volatility is back on the table.

Safe Trades!