Crypto Rally Slows Down as Bitcoin 2022 Conference Kicks Off

by Alex Benfield
By Alex Benfield

Today marks the start of the Bitcoin 2022 conference in Miami, and the market's dumping today just as it did at the start of the conference last year. Obviously, that's nothing but a coincidence. In fact, this latest correction is a rather predictable, as my colleague Marija Matić pointed out on Monday.

Bitcoin (BTC, Tech/Adoption Grade "A-") had been climbing since the March 7 low, so it makes sense that the market was ready to cool off a bit. So far this week, it's down roughly 5%.

BTC slipped below support at $45,000, though is still trading close to it. If it falls further, the most important thing is that BTC maintains its current pattern of higher lows and eventually sets an additional higher high.

That means, over the next week, we'll be watching to make sure BTC holds above $40,000. Even better if Bitcoin can hold the $42,000 level, as that would be a stronger show of strength.

Here's BTC in U.S. dollar terms via Coinbase Global (COIN):

 

Ethereum (ETH, Tech/Adoption Grade "A") is currently fighting to hold the support level of $3,250 in light of the broad market weakness. If it can't, then the $3,000 support will be critical, as holding there would still confirm its trend of higher lows. If it falls below there, it's possible the correction could be prolonged.

Again, this current pullback is market wide, and it shouldn't really come as a surprise. ETH has been climbing for almost a month straight, and it's still up more than 30% from its March 7 low.

Keep your eyes on the important levels of $3,200, $3,000 and lastly $2,800. The lower the price of ETH falls, the longer this pullback will last.

Here's ETH in U.S. dollar terms via Coinbase:

 


Notable News, Notes and Tweets:

 

What's Next

This pullback can be seen as a test of the entire crypto market to see if the recent rally is the start of a new bullish trend … or just a dead-cat bounce.

We could very well have the answer to that question in a week or so, depending on how these assets hold their current levels.

As I've mentioned earlier, today marks the start of the Bitcoin 2022 conference that will continue until Saturday. During last year's conference, Jack Mallers made the El Salvador Bitcoin announcement. So the potential for some big bullish announcements this week is on the mind of every investor.

Hopefully, if any such announcements are made, they'll be able to overpower any fear, uncertainty and doubt (FUD) from the Federal Open Market Committee's (FOMC) meeting minutes, which were released earlier today.

Keep watch for those important support levels on Bitcoin and Ethereum's charts and stay tuned for any big announcements that may come from the conference.

Best,

Alex

About the Crypto Analyst

Alex has been actively researching and investing in cryptocurrencies since 2017. He contributes research and reports to several Weiss crypto publications, with a primary focus on helping to create crypto trading strategies.

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