As the cryptocurrency market experiences its worst crash in years, Twitter is ablaze with red-striped charts suggesting another crypto winter has arrived.
The big downturn came during a bearish week for Wall Street stocks, a correlation that has not escaped notice:
I never wanted to see this, but if you look at the graphs, it’s clear:#Bitcoin never had a bull run without #Nasdaq support.
In fact, if the correlation goes down, it’s a bearish signal, as this has mainly happened on Nasdaq down swings. pic.twitter.com/OFb2eN9o5q
— CryptoNaut.UST ???? (@CryptoNaut1000) May 12, 2022
Despite experiencing the most horrific fire drill in recent history, some traders tried to joke about the exhausted days spent in front of their computer screens watching assets fall through the floor.
In case you were wondering, the mystery chart turned out to be the price of Luna coin, the cryptocurrency token intended to support the floundering Terra USD stablecoin – which was designed to remain consistently valued at $1 but have fallen below the market price in recent days. 40 cents fell. Luna, meanwhile, fell from nearly $120 in early April to about 1 cent this Thursday.
To fully appreciate crypto prices in the long run, you really need to plot them on a log chart. pic.twitter.com/MCPfMmn8UG
— cephalopod_v7_final_2.xlsx (@macrocephalopod) May 12, 2022
Luna’s dramatic demise could become one of the most dramatic events in crypto’s short history.
But plenty of other tokens are in their own world of pain. Litecoin, for example, which ranks in the top 20 cryptocurrencies by market cap, has to do with pre-pandemic (i.e. pre-crypto-mania) prices.
Only the people who follow the fundamentals and not the charts would understand how incredibly undervalued this ATM is. pic.twitter.com/RiHpx7lyfC
— Jaxx Ⓜ️????️ (@BtcLtcforlife) May 11, 2022
Even Bitcoin – the world’s largest cryptocurrency, with a market cap that exceeded $1 trillion at its peak – is in trouble. This chart shows that Bitcoin has not only fallen below its January 2021 price, but has thousands more to go before it hits a calculated support line — pointing to the low where you would normally expect people to start buying the dip, causing the price up again.
$BTC broke below the January 2021 low of ~28K. Based on the weekly chart, there is no support until the December 2017 high of ~20K. It doesn’t necessarily mean it will be there this week. In January it seemed to go to 29K, but the low was ~33K. That’s the lowest potential target for May pic.twitter.com/ubEQOf5CGx
— CyclesFan (@CyclesFan) May 12, 2022
A data analytics firm, meanwhile, seems optimistic that the support line is close, but that hardly detracts from the chart’s overall ugliness.
Remember the #Bitcoin March chart?
Updated chart below.
The most respected 2018 body support line (202 week EMA) acted as the first line of defense.#Bitcoin $BTC $BTCUSD #BTC #cryptocurrency #crypto
† We find the BEST respected moving average line ???? follow us https://t.co/xHprhMdIHb pic.twitter.com/Gl3Qo8DAL4
— Auto.MA.T.Ka (@Auto_MA_T_Ka) May 12, 2022
Ethereum, the second largest cryptocurrency, has also fallen to pre-2021 levels as the community licks its wounds and waits for support to arrive:
† My thoughts on the ETH market are these…
Below is the weekly chart for ETH and as you can see we are currently testing a former weekly support that ranges between $1600-1800 give or take ????
I see ETH holding tight here, worst case maybe a drop to $1200 or so???? pic.twitter.com/KrGPPERDrd
— .jpgPapii (@jpgPapiii) May 12, 2022
And Coinbase, the cryptocurrency exchange platform that had a blockbuster Nasdaq IPO near the height of crypto fanaticism last year, isn’t doing any better:
The Coinbase chart is doing some nasty inverse parabolic price action that looks like it could bend space and time. pic.twitter.com/ivbN4SZ72I
— ????Chillzill₳???????????????????? (@Chillzillaa) May 12, 2022
But if this is all too much, maybe it’s time to take a break from DexTools – and try to maintain the confidence you still have. Hold on, WAGMIA†
Don’t look at the charts, enjoy a few days off with family, because exciting times are coming ????
† CRYPTO GENERAL ???? (@DaCryptoGeneral) May 8, 2022