With the Nvidia earnings report expected to be bad news in the stock market, this has spilled over into crypto. Bitcoin has just dipped under $51,000, and the altcoins are seeing some big red candles.
Many were expecting the start of a decent correction when bitcoin hit $53,000 on Tuesday, and here we are on Wednesday with the alpha cryptocurrency down 2.7% on the day already. $BTC could be held up by support here, at least until the Nvidia news comes out, but altcoins are suffering much more.
Altcoins down $28 billion
Source: Coingecko/Trading View
Total 3 market cap (market capitalisation of all cryptocurrencies, excluding $BTC and $ETH) shows a clear picture of the altcoins. This does not look like a major dip at first glance, but thus far this is around 5%, which equates to a haircut of $28 billion for the altcoins.
That said, the price is holding at this level. Should it break this support, there is another level of support at $520 billion.
Generally, when looking at some of the major altcoins, many of these have already dipped to their local support levels and some are now on the way back up.
Ethereum falls back below resistance
Source: Coingecko/Trading View
Ethereum (ETH) could be seen as a proxy for altcoin performance, and it can be noted in the long term weekly chart above that the $ETH price has now fallen back to the underside of the resistance band. Over the last three days it had almost reached the other side, but this Nvidia overhang has perhaps forced the pull-back.
$ETH still looking bullish
Source: Coingecko/Trading View
However, in the shorter daily time frame it should be observed that $ETH still looks rather bullish. The price is inside an upward channel, and this could sustain the price if it came down to the bottom. Failing that, there is very strong support at $2,600, which also coincides with a fibonacci level.
Therefore, looking beyond the potential fallout from a possibly rather negative earnings report for the best performing technology stock in $NVDA, it will arguably be all systems go again for the crypto market. Traders must decide whether to buy the dip, or to start taking profits - never an easy decision to make.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
