Altcoins Are Preparing for a Major 30% Crash, Analyst Issues Grave Warning

Analyst Josh of Crypto World said that right now, a massive warning signal is still flashing on the Bitcoin chart, with the price continuing to decline from a critical area of resistance. Meanwhile, a new trading setup has been revealed on an altcoin chart. Considering these developments, and as long as we see net outflows, the market is likely to experience some short-term bearish price action, similar to what we’ve observed over the past week.

What’s in store for Ethereum?

He took a quick look at Ethereum on the daily timeframe, noting that the price of ETH is currently trading below the 38.2% Fibonacci support level, which was around $3480. Recently, there was a candle wick down to the 50% retracement level at approximately $3350, which is still providing strong short-term support. If the price closes below $3350, we could see a potential move down to the golden pocket area of support between $3180 and $3220. However, for now, $3350 remains the key support level.

In terms of resistance, $3650 is a significant level. Ethereum saw a bounce but was rejected from the golden pocket area of resistance between $3600 and $3650. This area remains a strong resistance level. If Ethereum can close above $3450, it might find support at that level.

What’s next for Solana?

Looking at the price of Solana, he said that it has continued its short-term bearish trend over the last day with a break below the critical support area between $140 and $144. The bearish outlook intensified once the price fell below $160, which led to a rapid move to the next support level at $140-$144, exactly as anticipated. After bouncing from that level, he warned that if the price broke below $140, a swift move down to around $128 was likely, which indeed occurred.

Now, $140-$144 is expected to act as new resistance. Even if Solana breaks above $144, there is still strong resistance at around $160. A breakout above $160 would be needed to shift the trend and momentum back to bullish. Until then, despite any brief rallies, Solana remains in a  short-term bearish trend.

Chainlink bears in action?

Currently, Chainlink is forming a massive bearish head and shoulders pattern on the 3-day timeframe. This pattern will come to play only if there’s a confirmed break below the neckline, ideally with a daily, 3-day, or weekly candle close. The neckline is around $13, and while the left shoulder, head, and right shoulder have formed, the pattern isn’t confirmed without a break below this level. If Chainlink breaks below $13, it sets up a bearish price target around $8.20, a potential 36% move down from the breakdown point. 

Also Read : Ethereum-Based Tokens Sky-High With the SEC’s Big Move: LDO & ENS Prices Approach Crucial Resistance