Cryptocurrencies are trading to the downside, and we are seeing some sharp intraday sell-offs, most likely triggered by risk-off flows.
As you know, normally when stocks are down, cryptos tend to move in the same direction, especially when there are significant sell-offs in the stock market like we've seen over the last few days, triggered by missed earning reports and lower technology sector.
It's not surprising that we are seeing a pullback, which we have been warning about in our past updates.
Some of the coins are experiencing very sharp sell-offs and deeper retracements, while other stronger coins are hitting interesting support levels. Even Bitcoin, the most important cryptocurrency, is at a very interesting first area of support.
However, looking at the total crypto market cap, there is a sharp one-leg down, suggesting a more complex and deeper ABC retracement before the market may really find new buyers. There is first technical strong support around the $2.24 trillion level.
Looking at the NASDAQ 100, there seems to be a very strong impulse away from the highs, but we see prices possibly in the 5th wave approaching some support around 19,000. If we get an ABC rally in the near term, crypto could also stabilize.
