The Goldman Sachs-induced sell-off in the crypto market has finally halted, as most major cryptocurrencies have posted gains over the last 24 hours.
Interestingly, Ethereum has failed to post any real gains over the last 24 hours and is currently negative on the day. We reported earlier that ETH is currently trading at its lowest level in over 12 months, driven partially by a worsening macro environment and waning investor interest in initial coin offerings (ICO).
Investors should trade cautiously here, as this recovery has been relatively low in volume. Additionally, the fact that Goldman Sachs came out to call the report that caused the sell-off “fake news” and the market has failed to respond is not the best indicator. These factors suggest we could be looking at a dead-cat bounce and more pain could be ahead.
The next key level to watch for Bitcoin is $5,000, which has been highlighted as a major support line to watch by Stephen Innes, head of Asia Pacific trading at Oanda Corp.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.