Cryptos Break Below Previous Support, Then Rebound: Bitcoin, Ethereum, XRP

By May 13, 2022DeFi
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Get down to support.


Getty

That spot on the price chart where the ‘fall’ stopped and the ‘rise’ began a few weeks or months ago is known to analysts as the support level. A sufficient number of investors came in as buyers and reversed the downward trend. When this previous buying zone is breached – more sellers than buyers – it is noticed by both artificial intelligence and mere humans.

That’s what happened this week for major cryptocurrencies and is worth noting because of the magnitude of its impact on related stocks, such as Coin Base Global and MicroStrategy.

MSTR
. Both hit new 52-week lows. When Coin Base made its initial public offering last May, the stock hit 400 – it now trades at 58.

Getting involved with cryptos has been a bad choice so far this year.

Bitcoin

BTC
. Here is the weekly prize table:

Bitcoin Weekly Price Chart, 5 13 22


stockcharts.com

This week’s drop below 28,000 is a problem for Bitcoin as this level has found buyers in 2021 and support has held there. It has bounced above this area, but once support is removed with such significant volume, it may be difficult for this best-known crupto to sustain a move back above. Neither the RSI nor MACD indicators suggest any positive divergence.

Ether

ETH
uh.
The weekly price chart is here:

Ethereum weekly price chart, 5 13 22.


stockcharts.com

This crypto simply touched previous 2021 support levels before the “buy the dip” crowd surfaced. As with the bitcoin price chart, neither the Relative Strength Indicator (RSI) nor the Moving Average Convergence/Divergence indicator yet suggests a positive outlook.

XRP

XRP
Here is the weekly prize table:

XRP weekly price chart, 5 13 22.


stockcharts.com

Ripple, as is known, has definitely eliminated previous support zones with a vengeance. It was unable to rally above the 50 cent level. Note how XRP was trading near $2.00 in April 2021 and is now going to 44. These are extraordinarily volatile moves in the cryptocurrency world.

Parts basis. Here is the weekly prize table:

Coinbase Global weekly price chart, 5 13 22.


stockcharts.com

The company went public in April 2021 to much publicity and success. Now you must be wondering why. Coinbase broke support at around 160 in March and, after a brief rebound, fell on strong selling volume. Today’s price of 69 must come as a shock to those who bought around 340.

MicroStrategy. The weekly price chart looks like this:

MicroStrategy weekly price chart, 5 13 22.


stockcharts.com

CEO Michael Saylor is well known on the internet for photos of his face with laser eyes, for some reason. The stock broke through the 300 support level in early 2022 and can now be bought at 208. Note that MicroStrategy is down from the 1300 peak in early 2021 where some investors entered somewhere.

More charts and analysis on my website:

Good dealsCheap Stocks – Find the Most Undervalued Stocks on Wall Street

No investment advice. For educational purposes only.

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