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The crypto market has been flooded with bearish signals as Bitcoin led the market crash. The leading cryptocurrency shed over $20,000 from its all-time high. The BTC price plunge influenced the broad digital currency market, reversing the uptrend that has been witnessed in the weeks prior.

Bitcoin price crashes, Polygon and AAVE new ATH

Bitcoin price nears $40,000 as selling pressure mounts

Although many institutions have been dipping their toes in the cryptocurrency market and adding Bitcoin to their balance sheets, BTC has yet to gain more maturity as an alternative asset. The pioneer cryptocurrency has witnessed volatile price action in the past week, as Elon Musk toyed with the asset’s performance, adding to Bitcoin’s price jitters.

The recent Bitcoin price sharp reversal has driven investors to a new level of “fear” in the market, the highest level seen in the past year. The crypto fear and greed index shows that speculators are quite worried, but also represents an opportunity to buy the dip.

On the daily chart, Bitcoin price has broken out of an ascending parallel channel, shifting the price action to become bearish. BTC appears to be headed lower towards the support level at $42,000, coinciding with the previous rally top previously seen in January. The leading cryptocurrency broke out of said resistance level in early February and headed towards price discovery.

While Bitcoin was breaking below the aforementioned pattern, BTC printed two Doji candlesticks, which indicates general equilibrium between buyers and sellers, a heightened level of indecision. 

Bitcoin found outstanding support at $42K, rebounding slightly above to trade at just under $45,000 at the time of writing. BTC could reverse the period of underperformance it manages to close above the horizontal trend line at $44,791, which acted as support for the past three months. 

If BTC fails to hold the first line of defense, the cryptocurrency may find itself searching for strength at the 200-day moving average at roughly $39,700. Since the current price action is quite volatile, it would be useful to use a trading automation platform like CoinPanel, to set your stop-losses in case of downside movements ahead of time.

Even when Bitcoin price moves lower, you can still profit from the market. By setting a Full Trade with CoinPanel, you can look at the chart and identify areas you want to take profit, and set multiple targets. For risk management, you can map out key support areas to set as stop-losses. CoinPanel will automate all your trades for you, so you don’t miss out on the targets.

Ethereum sheds $1,000 following record high

Taking a look at the Ethereum 4-hour chart, the second-largest cryptocurrency by market capitalization has broken below the 50-day and the 100-day moving averages, while the 200-day MA remains intact. The slowest MA seems to be holding strong for ETH at $3,041. 

A head-and-shoulders pattern has formed on the ETH chart, signaling a potential decline of 20%, when calculating the local top of the head to the neckline of the formation. However, Ethereum would need to lose the 200-day MA as support before slumping down to $2,835. 

Despite the bearish pattern, Ethereum’s upcoming London upgrade should act as accelerating interest for the cryptocurrency, as ETH supply would be decreased as it heads towards Ethereum 2.0

Polygon (MATIC) and Aave (AAVE) print new record highs

Polygon (MATIC) price has been propelled by its increasing adoption and its usability in scaling Ethereum transactions. MATIC price action has broken out of a bull flag formation, heading higher to a clear conservative target of $2.60, coinciding with the 127.2% Fibonacci extension level on the 4-hour chart.

Aave (AAVE), a decentralized finance-based cryptocurrency has also recorded a new all-time high at $660 today, suggesting that DeFi summer is yet to come. On the 12-hour chart, AAVE price has been trading within a consolidation channel since February, and finally broke out above the upper trend line at $521, which field the bullish momentum. 

By creating another parallel channel directly above the current upper trend line, we can expect a target of $917 as long as AAVE stays above the upper trend line of the lower parallel channel. 

MATIC and AAVE price heading into price discovery has it prints new record highs adds credence to the bullish theory that we are not in a bear market despite the marketwide correction.

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