With risk and equities under pressure in the past week, crypto traders are also not having much fun either as sentiment is looking rather dour. Of note, cryptocurrencies were routed over the weekend with Bitcoin plunging from roughly $52,000 to a low of $42,333 before bouncing back a little.
Price is still trading below the $50,000 mark - a key psychological level - but at least buyers held a defense of the 200-day moving average (blue line). That will be a key technical point of contention in trading this week, currently residing @ $46,380.
Below that, the $40,000 mark will be the next key support level to watch.
For now, sellers are keeping poised and sentiment will lean towards that side of the coin as long as price keeps below $50,000.
Buyers need to try and break above that in order to reestablish some control in the short-term. Otherwise, the pressure may be on for a push to break back below both the key daily moving averages for the first time since July.
That will in turn pave the way for a potential downside leg towards the September lows near $40,000.