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Crypto Technical Analysis – 25.09.2019

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Bitcoin Technical Analysis

"Bitcoin

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Traders had been speculating for weeks on the direction of the breakout as a wedge has been formed over the past few months – DOWN was the resounding answer. After failing at numerous attempts to breakout on the upside of the trend channel, the selloff began overnight at 2:45am Asian time, cracking through not only the wedge formation but also the $9k support level which had held several times in the past two months, triggering sell stops across the board, which was then exacerbated by forced liquidations of long positions at various exchanges (street whispers of liquidations north of US$500m occurred at BitMEX). Considering that BTC had been trading in a range for the last two months resulting in declining realised and implied volatility, options traders may well have been caught short gamma just three days out from the nearest expiry, further magnifying the downward move. As a result, BTC traded briefly below $8k an hour into the selloff. Implied volatility also spiked more than 10% across the term structure.

At time of writing, BTC is trading at $8,500 having rebounded from the lower bound of the trend channel and is hovering just below the 50% Fibonacci Retracement level of the massive rally which began in February. Failure to trade back above this level and a breach of the lower end of the trend channel could take us down to the $7,400 area which corresponds to 61.8% Fibonacci Retracement.

The overall market capitalization of cryptocurrencies lost around $30 billion and is currently at $225 billion. Bitcoin dominance didn’t change much in the last 24 hours and is still at around 69%.

News of the Day

  • Bitcoin, Ethereum, Ripple’s XRP, And Litecoin In Shock Meltdown – Forbes
  • Bitcoin Price Collapses By More Than 15% In An Hour – Forbes
  • Wall Street Paves The Way For Bitcoin To Become ‘People’s Currency’ – Forbes
  • Bitfinex And Tether Win Stay In $900 Million New York Supreme Court Case – Forbes

Technical analysis provided by TDX Strategies

Disclaimer

Forbes Digital Assets

Research Team

research@forbesda.com

646-450-8808

Forbes Digital Assets does and seeks to do business with companies covered in ForbesDA Research. As a result, readers should be aware that the firm may have a conflict of interest that could affect the objectivity of Forbes Digital Assets Research. Investors should consider ForbesDA Research as only a single factor in making an&nbsp;investment decision.

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Bitcoin Technical Analysis

Traders had been speculating for weeks on the direction of the breakout as a wedge has been formed over the past few months – DOWN was the resounding answer. After failing at numerous attempts to breakout on the upside of the trend channel, the selloff began overnight at 2:45am Asian time, cracking through not only the wedge formation but also the $9k support level which had held several times in the past two months, triggering sell stops across the board, which was then exacerbated by forced liquidations of long positions at various exchanges (street whispers of liquidations north of US$500m occurred at BitMEX). Considering that BTC had been trading in a range for the last two months resulting in declining realised and implied volatility, options traders may well have been caught short gamma just three days out from the nearest expiry, further magnifying the downward move. As a result, BTC traded briefly below $8k an hour into the selloff. Implied volatility also spiked more than 10% across the term structure.

At time of writing, BTC is trading at $8,500 having rebounded from the lower bound of the trend channel and is hovering just below the 50% Fibonacci Retracement level of the massive rally which began in February. Failure to trade back above this level and a breach of the lower end of the trend channel could take us down to the $7,400 area which corresponds to 61.8% Fibonacci Retracement.

The overall market capitalization of cryptocurrencies lost around $30 billion and is currently at $225 billion. Bitcoin dominance didn’t change much in the last 24 hours and is still at around 69%.

News of the Day

  • Bitcoin, Ethereum, Ripple’s XRP, And Litecoin In Shock Meltdown – Forbes
  • Bitcoin Price Collapses By More Than 15% In An Hour – Forbes
  • Wall Street Paves The Way For Bitcoin To Become ‘People’s Currency’ – Forbes
  • Bitfinex And Tether Win Stay In $900 Million New York Supreme Court Case – Forbes

Technical analysis provided by TDX Strategies

Disclaimer

Forbes Digital Assets

Research Team

research@forbesda.com

646-450-8808

Forbes Digital Assets does and seeks to do business with companies covered in ForbesDA Research. As a result, readers should be aware that the firm may have a conflict of interest that could affect the objectivity of Forbes Digital Assets Research. Investors should consider ForbesDA Research as only a single factor in making an investment decision.

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