Hope you’re having a good Tuesday. It’s Matt here. 

Panic hit the markets again this week. The benchmark indexes got smoked yesterday as stocks continued their sell-off. 

But stocks aren’t the only asset class selling off. Cryptocurrency and NFTs are getting crushed. 

And that news is music to my ears. After all, the best time to go shopping is when there’s a discount, right? 

Today, we’re gonna take a look at some key levels in crypto –– where support is and where it could end up if things drop further. I’ll also share a couple of NFT projects I’m watching.

Let’s get into it… 

Key Support Levels for the Top 3 Cryptocurrencies

Cryptocurrencies are plunging along with the stock market. Bitcoin (BTC) recently dropped around 50% from its all-time high. That begs the question: when will it stop? 

No one’s got a crystal ball when it comes to predicting the markets, but we do have the next best thing –– support levels! So let’s take a look at the key levels that the top three cryptocurrencies must hold onto for support. 

Bitcoin (BTC) 

At the time of this writing (Monday), Bitcoin was hovering above the key support level of $30,000. It found support at this level in January 2021 and July 2021 before taking off to highs above the $60,000 level –– both times. It absolutely must hold this support level to avoid major pain.

If Bitcoin can’t hold $30,000, the next level of support isn’t until $20,000. It peaked at $20,000 in December 2017, broke out past that mark in December 2020, then completed its march up to $40,000. It’s not uncommon for a previous peak (also called a resistance level) to become the new support level on the way down. 

If Bitcoin (BTC) comes close to the $20,000 level, a ton of buyers could flock in.

Ethereum (ETH)

At the time of this writing, Ethereum was hovering around $2,200. It previously dipped below the $2,000 threshold when it double-bottomed in June and July of 2021 at around $1,900. 

It also peaked around the $1,800 level in February and March of 2021 before making a big leap up above $4,000.

If Ethereum breaks below the $2,000 level, it could find support between $1,200 to $1,300 –– its peak in January 2018. This level could inspire a lot of buying pressure from traders and institutional investors alike.

Solana (SOL)

Solana’s dropped below a couple of key support levels in the low $80s and low $70s, down to $65 at the time of this writing. 

The most energy-efficient crypto coin on the market could well continue to fall too. Even though Solana’s risen in popularity recently (and even backed some NFT projects, while most started running on Bitcoin or Ethereum) … it’s still kind of an altcoin.  

If Solana continues to drop, it could see the mid $50 range, mid $40 range, or even mid $30s, as it has touched all of those points in the summer of 2021.

NFT Projects I’m Watching

NFTs are also getting crushed. That’s just the name of the game lately. 

And I don’t think the pain is over yet. Right now, it seems like everything’s dropping at the same time. 

But here are a couple of projects I find interesting…

Previously, there was an inverse relationship between crypto and NFTs. The cheaper cryptocurrencies were, the lower gas fees would be when purchasing NFTs. It made sense. 

But now, everyone’s just scared. And I don’t blame them. I think we’ll need to see confirmation of a bottom in the more trusted commodities — like Bitcoin and Ethereum (and perhaps in the overall stock market as well) — before traders feel comfortable with speculative assets like NFTs again.

The three NFT projects I’m watching are Cool Cats (down 40% in the past 7 days), Okay Bears (down 41% in the past 7 days), and Moonbirds (down a whopping 61% in the past 7 days). 

That said, it’s gotta be mentioned that Otherdeeds dropped 56%, Bored Ape Yacht Club 46%, and Mutant Ape Yacht Club 49% — all in the same period. All stats are according to OpenSea. 

Conclusion

Cryptocurrencies and NFTs are taking a beating alongside the stock market. And that’s excellent news for traders. If you’re not in anything, it’s a great time to learn how they move. With enough knowledge and skill, it can be possible to jump in at the right time. 

I’m glad that I can rely on multiple people to help me get a feel for where the market is going. That’s the benefit of being part of a team of experienced traders. 

My mentor, Tim Sykes, wants every trader to feel supported that way. That’s why he built the NFT Club. He’s on a mission to help traders find success in every asset class, and he’s put his blood, sweat, and cheers into this program –– like he does all his work. For the latest alpha on the crypto and NFT world, join us in the Tim Sykes’ NFT Club.