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Global financial markets experienced a significant volatility event late Friday, resulting in sharp declines across precious metals and cryptocurrencies while the US Dollar strengthened. As the Bitcoin Fear and Greed Index drops to 14—indicating extreme fear—analysts at Chart Hackers have identified critical technical support levels that could determine whether asset classes stage a relief rally or face further capitulation.
Key Market Developments
- Precious Metals Sell-Off: Silver plunged approximately 38% from recent highs, while Gold dropped 16%, testing key moving averages.
- Crypto Volatility: Bitcoin lost the $80,000 level, triggering a market-wide correction, with Solana retesting $100 and Ethereum missing major support zones.
- Dollar Strength: The DXY (US Dollar Index) surge is pressuring risk assets, with analysts watching the 98.6 level as a potential turning point.
- Equities Impact: Technical buy zones have been identified for major tech stocks including Nvidia, Microsoft, and Oracle amidst the broader downturn.
Commodities: Capitulation and Critical Support
The precious metals market witnessed a brutal correction, forcing leverage out of the system. Gold, while battered, performed relatively better than Silver. According to technical analysis from Chart Hackers, Gold found initial interest at the $4,780 region, a zone comprised of Trend 618 horizontals and VWAP confluence.
Analysts warn that a relief rally could face stiff resistance. If Gold climbs higher, the $5,130 to $5,140 range is viewed as a "local bear zone" where selling pressure may resume. Conversely, further weakness could see Gold test the 50-day moving average between $4,550 and $4,480.
Silver faced a more severe decline, dropping nearly 38% from its highs. The analysis highlights the $70 mark as a "must-hold" macro support level. Short-term price action remains precarious; closing below $81 could trigger further downside volatility toward wick fills. However, oscillators suggest potential upside, with resistance targets at $92.30 and $98.
"It was pretty brutal out there and a lot of guys got rinsed... Silver was capitulating onto that 50-day and that gave a lot of the guys a nice little bounce there to work with."
Crypto Markets: Peak Fear and Technical Levels
The cryptocurrency market is currently exhibiting signs of "max fear," historically a signal for contrarian entries. A key indicator, USDT (Tether) dominance, has exploded into a major resistance zone at 7.28%. Historically, when stablecoin dominance hits resistance, risk assets like Bitcoin often find a local bottom.
Bitcoin (BTC)
Following the loss of the $80,000 level, Bitcoin is currently testing the $75,000 to $78,000 weekly support region. Analysts noted that on a monthly timeframe, a deeper correction could theoretically target the $57,700 to $50,000 range if selling accelerates. However, the immediate focus remains on the current deviation and potential bounce.
"We are at peak bear market vibes right now... Sometimes that can prep us for a short-term bounce."
Altcoins
Ethereum (ETH) presents a concern for traders as it failed to test its major support level at $2,150 during the initial flush, leaving potential downside risk on the table. Meanwhile, Solana (SOL) is holding the psychological $100 level. A failure to hold this zone could see SOL retrace to $80, while upside moves face resistance at $115 and $120.
Equities and Macro Outlook
The sell-off has extended into the equities market, influenced heavily by the strengthening US Dollar. The analysis suggests that if the DXY continues to rally into the 98.6 region, it could mark a local top for the dollar and a buy opportunity for stocks and crypto.
Specific technical entries were highlighted for traders watching the correction:
- Microsoft (MSFT): Primary interest at $390.
- Nvidia (NVDA): Potential long interest at $185, with breakout potential at $190.
- Oracle (ORCL): Support zone identified between $150 and $167.
- MicroStrategy (MSTR): Viewed as a leading indicator for Bitcoin, MSTR lost key levels late Friday. Analysts are targeting $100–$105 for a potential bounce.
As the new trading week begins, market participants are advised to monitor the US Dollar Index closely. A rejection at resistance for the DXY, combined with USDT dominance hitting its ceiling, could provide the necessary confluence for a relief rally across both metals and cryptocurrencies.
