The major crypto market suffered the brunt of the dramatic drop in US tech stocks yesterday.

Key technical factors of the article:

  • Spectacular drop of more than 5% yesterday on the Nasdaq, the US tech stars fell and this produced a bearish contagion on cryptos like in early March …
  • On a technical level, the price of Bitcoin is on the brink of collapse. You have to bounce back to $ 9,600 / $ 10,000 otherwise all the rise of the last few months could be erased.

There is a smell of early March on the financial markets. Yesterday there was a dramatic drop in Nasdaq values, Apple, Tesla, Amazon and company losing hundreds of billions of dollars in market capitalization in a matter of hours. It is true that their endless vertical uptrend was excessive and that this krack session was coming; well she arrived yesterday.

Overall, the bearish contagion on European equities is limited, but the cryptocurrency market has suffered greatly. This is a reminder that cryptos are not safe havens and are often still a reserve of liquidity in the event of a fall in stocks.

What are the technical damages?

Bitcoin Futures Contract (BTC) by TradingView

At the current stage, this can be seen as a pull back, a movement back on the resistance (which became support) crossed last July. These are the $ 10,000 on the Bitcoin price and the bullish gap on the BTC futures contract between $ 9,600 and $ 9,900. If these supports now revive the bullish machine, then everything will be fine for the underlying momentum.

Otherwise, the technical situation will become very tense. We'll talk about it again next week, good weekend everyone.

Follow Vincent Ganne on Trading View for more financial market analysis. The technical thresholds and trend shown above are based on the "price, momentum, sentiment, ichimoku" technical approach. The data comes from Bitstamp and the graphics of TradingView.

This content is provided for informational purposes only and does not constitute an investment recommendation. We remind you that theinvesting in crypto-assets, including Bitcoin, is extremely risky. Cryptocurrency prices are subject to large and unpredictable price fluctuations.

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