Crypto prices continue to face substantial selling pressure even as equities and Gold show resilience on Wednesday.
The Bitcoin price is on the cusp of falling to sub-$60k levels and is trading at $60,300 at press time. Meme coins and AI cryptocurrencies are faring even worse, with their market capitalization down by 9% and 11% respectively.
BTC and several large caps are now testing key support levels, which could lead to a broader crypto crash or a bullish reversal.
Smart money investors are pivoting to presale tokens and new meme coins like Degen, TRUMP, PEPU and MEMEBET, owing to their lack of correlation with BTC.
Bitcoin Price Tests 99-Day SMMA – Will The Crypto Crash Continue?
The Bitcoin price is currently testing the 99 Smoothed Moving Average on the daily timeframe, which has historically been a crucial support level.
It is currently hovering just under the $60k mark, as denoted by the purple line in the BTC price chart below.
Prominent crypto investor Nebraskangooner anticipates that the 99 SMMA could be a possible spot for Bitcoin to stabilize the downside volatility. However, a breakdown below could lead to a broader crypto crash.
In such a scenario, BTC could test the 0.718 Fibonacci level at $53,100, which would mean another 11% correction.
BTC is already trading below several key support levels, including the 4-hour 200 EMA, the 200-day SMA and the 200-day EMA. Ideally, swing traders could wait for a reclaim of these levels before scaling into a long position.
However, sidelined investors can buy the dip if the Bitcoin price secures a daily close above the 99 SMMA. As such, experts remain bullish on BTC in the long term despite the short-term bearish trajectory.
Altcoins Face Key Tests As Well
A few altcoins have delivered outsized returns despite Tuesday’s crypto crash.
For instance, Sui (SUI) is up by nearly 4% today, bringing its monthly gains to over 120%. SEI, TAO and Dogwifhat have also posted substantial gains over the past week.
However, smart money investor HornHairs anticipates that these strong coins will soon face crucial retests in the 4-hour timeframe, particularly the 200 EMA and 200 SMA levels.
Similarly, Pepe (PEPE) is approaching the 200 EMA and 100 SMA levels in the 4-hour timeframe. The bulls would hope for a high volume bounce back from these levels, which could signal a price recovery in the coming weeks.
It is no surprise that Bitcoin and large-cap altcoins are testing these key levels. Crypto prices have displayed significant downside volatility at the start of every month since July, only to form local bottoms by the 5th or 6th day.
If the trend repeats, the ‘Uptober’ projections may still play out. However, the possibility of a broader crypto crash cannot be ruled out in the short term.
Investors Pivot To New Meme Coins
The demand for low-cap cryptocurrencies is soaring once again in light of the broader market uncertainty.
For instance, a Base meme coin Degen (DEGEN) is up by 15% on Wednesday, bringing its weekly gains to over 70%. Similarly, the TRUMP coin has surged by over 50% in the weekly time frame.
Unsurprisingly, there is also a strong uptick in the demand for presale cryptocurrencies.
For instance, Pepe Unchained (PEPU) hit the $17 million milestone in its presale today, raising the last million in under 5 days.
As such, Pepe Unchained’s Layer-2 scaling solution is creating quite a buzz, especially after pump.fun is launching gems like Moo Deng.
With its high utility, sound tokenomics and robust presale demand, it is no surprise that smart money investors are bullish on PEPU, with some even calling it “one of the biggest presale launches ever”.
Similarly, Memebet Token (MEMEBET) has piqued the attention of meme coin enthusiasts.
For the uninitiated, Memebet Casino is the first-ever meme coin-based gambling platform, allowing players to compete with top meme tokens like DOGE, SHIB and PEPE.
With its Telegram-based UI, meme coin integration and attractive monetary perks, Memebet Casino promises to be a major player in the GambleFi sector, potentially even competing with Rollbit for market share.
Considering MEMEBET is a low-cap gem, a growing number of prominent investors expect to offer up to 100x returns.
