As the cryptocurrency market burns through its worst crash in years, Twitter is ablaze with charts streaked in red, suggesting that a new crypto winter is here.
The great downturn came during a bearish week for Wall Street stocks, a correlation that didn’t escape notice:
I never wanted to see this, but if you check the charts it's obvious:#Bitcoin never had a bull run without #Nasdaq support.
Actually, if correlation goes down, it's even a bearish signal, since this has happened predominantly on Nasdaq down-swings. pic.twitter.com/OFb2eN9o5q
— CryptoNaut.UST ???? (@CryptoNaut1000) May 12, 2022
Despite working through what must be the most horrifying fire drill in recent memory, some traders still tried to joke about the frazzled days spent glued to their computer screens, watching assets fall through the floor.
How my charts are set up today. pic.twitter.com/QwZcpoUo2n
— Philakone (@PhilakoneCrypto) May 12, 2022
Others found a different type of humor in the madness.
Let's play a game…
— Crypto Rover (@rovercrc) May 12, 2022
If you were wondering: The mystery chart turned out to be the price of Luna coin, the cryptocurrency token meant to buoy the floundering Terra USD stablecoin—which was designed to stay consistently valued at $1 but sank to under 40 cents in recent days. Luna, meanwhile, dropped from nearly $120 in early April to roughly 1 cent Thursday—an event so catastrophic that its developer Terraform Labs was forced to halt its blockchain operations for a brief period midday.
To fully appreciate crypto prices over the long term, you really need to plot them on a log chart. pic.twitter.com/MCPfMmn8UG
— cephalopod_v7_final_2.xlsx (@macrocephalopod) May 12, 2022
Luna’s dramatic demise could ultimately be one of the most consequential moments in crypto history.
Luna will go down as the best meme chart ever in crypto. pic.twitter.com/okniJf6zIu
— MDX Crypto (@MDXcrypto) May 11, 2022
It’s now at least $30 billion lost.
Luna's market cap has dropped ~$30 billion in the last week ???? pic.twitter.com/dn1axyDJj1
— TradingView (@tradingview) May 11, 2022
But altogether, global cryptocurrencies have lost nearly $500 billion in the past week—meaning plenty of other tokens are in their own worlds of pain. For example, Litecoin, which ranks among the top 20 tokens by market capitalization, has dropped to pre-pandemic (i.e. pre-crypto mania) prices.
Only the people that follow the fundamentals and not the charts would understand how incredibly undervalued this is ATM. pic.twitter.com/RiHpx7lyfC
— Jaxx Ⓜ️????️ (@BtcLtcforlife) May 11, 2022
Even Bitcoin—the world’s largest cryptocurrency, with a market capitalization that surpassed $1 trillion at its peaks—is in trouble. This chart observes that Bitcoin has not just dropped below its January 2021 price, but is also thousands of dollars away from reaching a calculated support line—which refers to a low point at which probabilities converge to predict people start buying the dip, thus bringing the price back up.
$BTC broke below its January 2021 low ~28K. Based on the weekly chart there's no support until the December 2017 high ~20K. It doesn't necessarily mean it will get there this week. In January it seemed headed to 29K but it bottomed ~33K. That's the lowest potential target for May pic.twitter.com/ubEQOf5CGx
— CyclesFan (@CyclesFan) May 12, 2022
A data analytics firm, meanwhile, seems optimistic that the support line is close—but that hardly distracts from the graph’s overall bleakness.
Remember the #Bitcoin weekly chart from March?
Updated chart below.
The best respected body support line from 2018 (202-week EMA) acted as first defense line.#Bitcoin $BTC $BTCUSD #BTC #cryptocurrency #Crypto
???? We find the BEST Respected Moving Average Line ???? Follow us https://t.co/xHprhMdIHb pic.twitter.com/Gl3Qo8DAL4
— Auto.MA.T.Ka (@Auto_MA_T_Ka) May 12, 2022
Ethereum, the second-largest cryptocurrency, has also dropped to pre-2021 levels while the community licks its wounds and waits for support to engage.
???? My thoughts on the ETH market is this…
Below is the weekly chart for ETH and as you can see we are currently testing a former weekly support that ranges between $1600-1800 give or take ????
I can see ETH holding firm here, worst case maybe a drop to $1200 or so ???? pic.twitter.com/KrGPPERDrd
— .jpgPapii (@jpgPapiii) May 12, 2022
And Coinbase, the cryptocurrency exchange platform that had a blockbuster Nasdaq IPO last year at the height of crypto fanaticism, isn’t faring any better.
The Coinbase chart is doing some nasty reverse parabolic price action that looks like it may bend space and time. pic.twitter.com/ivbN4SZ72I
— ????Chillzill₳???????????????????? (@Chillzillaaa) May 12, 2022
But if this is all too distressing, maybe it’s time to take a break from from DexTools—and try to keep whatever faith you have left. HODL on, WAGMI! Let’s hope.
Don't look at the charts , enjoy some days off with family, because exciting times are ahead ????
— ???? CRYPTO GENERAL ???? (@DaCryptoGeneral) May 8, 2022