Slowly but surely
BTC has cracked through the second flag albeit with much lower sell volume. On the 1H, we are witnessing a break of the $6,919 resistance line however, this candle is still open so anything could happen.
We are slowly grinding down lower through this shorting zone and It is looking increasingly more likely than not that we will be heading down to lower levels as mentioned in our previous updates.
BTC
Topic: 🚨 BTC Bloodbath 🚨 - page 2. (Read 306 times)
Interesting theory regarding the outperformance of the coins like BNB and COSS etc which are used for the exchanger fee discounts and other features. I am not sure how true it is that they get spiked in such period because that is not the case always I see here. One of the reason that I might think about it is BNB getting used heavily for the transactions that are rising since bitcoin is crashing and people are trying to sell off everything in the want that they will earn more bitcoin. Thus net effect is on the tokens like BNB which are predominantly used to decrease the trade fees. This is just one of the theory according to me. It could be wrong or true.
DOWN TREND CONTINUATION?
BTC is continuing to grind down lower no matter what positive news is thrown our way.
Looking at the 1H chart, we can see another sell off occurring which reaffirms (not that there was much doubt) that the bearish continuation is set to resume.
We’re cracking the second bear flag now and if we breach $6,910, may consider shorting down to the $6,770 level but possibly beyond depending on the play.
These aren’t big moves by any stretch, but it is better to play it safe in times of uncertainty. We will be watching closely at the $6,770 level which is the next major resistance zone.
BTC is continuing to grind down lower no matter what positive news is thrown our way.
Looking at the 1H chart, we can see another sell off occurring which reaffirms (not that there was much doubt) that the bearish continuation is set to resume.
We’re cracking the second bear flag now and if we breach $6,910, may consider shorting down to the $6,770 level but possibly beyond depending on the play.
These aren’t big moves by any stretch, but it is better to play it safe in times of uncertainty. We will be watching closely at the $6,770 level which is the next major resistance zone.
One could not really understand what is happened in the market and it seems everybody are selling and few are holding. If this downwards trend continue we may have a very bad day in days to come. I hope the $7,000 area hold as from tomorrow.
At the time of writing BTC is currently sitting at $7,572 – a 6.9% decline over the last 24 hours. Other market leaders like Ethereum and EOS have also seen declines in the region of 4-6%. One notable stand-out performer in this downward market cycle is Binance's native token. BNB token has held strong posting a gain of 0.75%. This is nothing spectacular but it is nice to see a bit of green in a sea of red.
Typically when the market does behave like this, exchange tokens like BNB, KCS, COSS...etc outperform the market. For the sake of this explanation, we will refer solely to the Binance exchange token – BNB.
During bear cycles traders exit BTC and ALT’s to enter fiat, Tether or exchange tokens. The additional fee’s and potential tax implications associated with entering and exiting fiat are a deterrent. Likewise, entering Tether has its own drawbacks too, namely the sacrifice of potential USD gains that could be made by holding something that has a fluctuating value.
The one that remains is BNB which is a dividend paying exchange token from arguably the most trusted exchange in cryptocurrency today - Binance. Historically BNB outperforms the market in bear cycles, allowing traders to mitigate their losses on their long positions or swing trade and make some nice gains.
In times like these, we sometimes employ a strategy wherby we Tether 50% and enter BNB with the other 50% of the funds produced when exiting our BTC and ALT positions. In addition to opening shorts, this strategy allows us to diversify some degree of risk out of our portfolio. Risk management is job number one for any serious trader, no matter what type of market you are in. This is a mentality lost on many cryptocurrency traders but is a discipline we bring from trading traditional markets like FOREX.
It is important to remember why markets behave the way that they do. We have just witnessed a long period of sustained growth, albeit slow growth in crypto time, but growth nonetheless. There always has to be a correction that follows periods of growth and that is what we are witnessing right now.
As the saying goes “you take the stairs up and the elevator down”. It is always amusing to see the dramatic overreactions of others during corrections like these, many claiming the sky is falling. Just like every time winter rolls around, people are amazed at how cold it is – memory is selective, we only want to remember the good times.
Our previous stops set at $7,750 were hit and we are now retesting some strong support at $7,500. If we break this support we may very well drop below $7,000 again although we would expect some support at the $7,200 level. We will continue to monitor how this move plays out and will be keeping tight stops on our BNB position.
ICE Bullish on BTC
Intercontinental Exchange, owner of the NYSE, who we wrote about earlier this week, has explained the rationale behind their announcement earlier this week, “Bitcoin has the potential to become the first worldwide currency and we're trying to make that happen” – a quote from Jeffrey Sprecher, founder of the Intercontinental Exchange.
Korean Exchange Bump
Some positive news out of Korea, UpBit has been officially cleared of the fraud which they were investigated for earlier this year. Bithumb has also announced that they will now have fiat on ramps for BTC, ETH, ETC, XRP, LTC, BCH, ZEC, QTUM & MITH. This is a great move in the right direction making it easier for Korean investors to trade between fiat and cryptocurrency.
We are still in a bear cycle, typified by the downward movement in price, even in light of this positive news coming from New York and Korea. However, we view this as a great opportunity to get our hands on some undervalued BTC and Altcoins. Right now we are waiting for the correct time to enter and will be bringing you some TA shortly with potential levels for entry.
#CAVEAT
Intercontinental Exchange, owner of the NYSE, who we wrote about earlier this week, has explained the rationale behind their announcement earlier this week, “Bitcoin has the potential to become the first worldwide currency and we're trying to make that happen” – a quote from Jeffrey Sprecher, founder of the Intercontinental Exchange.
Korean Exchange Bump
Some positive news out of Korea, UpBit has been officially cleared of the fraud which they were investigated for earlier this year. Bithumb has also announced that they will now have fiat on ramps for BTC, ETH, ETC, XRP, LTC, BCH, ZEC, QTUM & MITH. This is a great move in the right direction making it easier for Korean investors to trade between fiat and cryptocurrency.
We are still in a bear cycle, typified by the downward movement in price, even in light of this positive news coming from New York and Korea. However, we view this as a great opportunity to get our hands on some undervalued BTC and Altcoins. Right now we are waiting for the correct time to enter and will be bringing you some TA shortly with potential levels for entry.
#CAVEAT
BTC E-Commerce use tumbles
BTC e-commerce use has fallen 85% from $411m last September to a low of $60m in May this year. This rapid decline gives us an interesting look into one of the factors that preceded and followed the bull market run at the end of last year.
Firstly let’s consider some of the factors that would have contributed to this decline. The most prominent being the transaction cost. BTC has been notoriously bad at scaling resulting in absurdly high transaction costs. High transaction costs and transaction cost volatility simply do not make BTC a viable form of currency.
Speaking about volatility, since last September BTC has risen from $4,000 to $20,000 then back down to $7,000 today. Price volatility is also a major problem for vendors as they may charge $50 in BTC for goods on Monday and that amount of BTC could be worth $30 by Wednesday.
Payment companies like Stripe removed BTC payment as an option in January of this year claiming that transactions were too slow and too expensive. This is seemingly a move in response to difficulty experienced by the BTC network during periods of high volume.
This 85% decline is no cause for concern as these issues with the BTC network can and will be solved with innovative scaling solutions, the lightning network is a good start. One noteworthy consideration is the paradigm shift from BTC being a currency to BTC being a store of value.
With this new categorisation of BTC came new innovative cryptocurrency solutions well equipped to handle the scaling issues that BTC could not. Tokens such as Nano or Fantom which are built on DAG network architecture can facilitate hundreds of thousands of transactions per second with no transaction fees. These new high speed and low cost alternatives are still in their infancy however.
E-commerce usage of BTC may have dropped but it has been transferred elsewhere to tokens built for the purpose of acting as a currency. The river will flow through the path of least resistance.
BTC e-commerce use has fallen 85% from $411m last September to a low of $60m in May this year. This rapid decline gives us an interesting look into one of the factors that preceded and followed the bull market run at the end of last year.
Firstly let’s consider some of the factors that would have contributed to this decline. The most prominent being the transaction cost. BTC has been notoriously bad at scaling resulting in absurdly high transaction costs. High transaction costs and transaction cost volatility simply do not make BTC a viable form of currency.
Speaking about volatility, since last September BTC has risen from $4,000 to $20,000 then back down to $7,000 today. Price volatility is also a major problem for vendors as they may charge $50 in BTC for goods on Monday and that amount of BTC could be worth $30 by Wednesday.
Payment companies like Stripe removed BTC payment as an option in January of this year claiming that transactions were too slow and too expensive. This is seemingly a move in response to difficulty experienced by the BTC network during periods of high volume.
This 85% decline is no cause for concern as these issues with the BTC network can and will be solved with innovative scaling solutions, the lightning network is a good start. One noteworthy consideration is the paradigm shift from BTC being a currency to BTC being a store of value.
With this new categorisation of BTC came new innovative cryptocurrency solutions well equipped to handle the scaling issues that BTC could not. Tokens such as Nano or Fantom which are built on DAG network architecture can facilitate hundreds of thousands of transactions per second with no transaction fees. These new high speed and low cost alternatives are still in their infancy however.
E-commerce usage of BTC may have dropped but it has been transferred elsewhere to tokens built for the purpose of acting as a currency. The river will flow through the path of least resistance.
Grinding up
BTC is currently on a slow grind up within the current consolidation zone between $7,500 and $7,250.
We’re currently printing higher lows as we march towards the 0.236 fib level but it would not surprise us to see a bearish retreat and retest of $7,265 level as we could potentially be in a bear flag pattern.
We would view any break and close below $7,200 as a shorting opportunity to around the $6,860 level.
On the other hand, if we witness some convincing buy volume at the $7,200 mark, we would consider going long with targets as high as $7,800 but more conservatively, would look at possibly exiting at $7740 or even $7,520 depending on the bullish momentum.
BTC is currently on a slow grind up within the current consolidation zone between $7,500 and $7,250.
We’re currently printing higher lows as we march towards the 0.236 fib level but it would not surprise us to see a bearish retreat and retest of $7,265 level as we could potentially be in a bear flag pattern.
We would view any break and close below $7,200 as a shorting opportunity to around the $6,860 level.
On the other hand, if we witness some convincing buy volume at the $7,200 mark, we would consider going long with targets as high as $7,800 but more conservatively, would look at possibly exiting at $7740 or even $7,520 depending on the bullish momentum.
BREAKING: OWNER OF THE NYSE TO BEGIN BTC TRADING
Intercontinental Exchange (ICE), owner of the NYSE has announced that it will list a physically settled BTC contract.
ICE had previously hinted that they were exploring BTC trading in New York but nothing was clear cut.
Their new BTC platform named Bakkt has been in development partnered with the likes of Microsoft and Starbucks.
This story is still breaking but it should be seen as good news, allowing more money to flow into cryptocurrency.
There is no telling what effect this news will have as it may well already be baked into the price.
.
Intercontinental Exchange (ICE), owner of the NYSE has announced that it will list a physically settled BTC contract.
ICE had previously hinted that they were exploring BTC trading in New York but nothing was clear cut.
Their new BTC platform named Bakkt has been in development partnered with the likes of Microsoft and Starbucks.
This story is still breaking but it should be seen as good news, allowing more money to flow into cryptocurrency.
There is no telling what effect this news will have as it may well already be baked into the price.
.
BTC is currently sitting at the $7560 mark and is down approximately 2% since our last TA update.
Selling pressure is weighing down on the overall BTC market however, we did see a strong rebound at the $7480 level.
As can be seen from the chart, this level has historically been a strong resistance level and is now acting as a support.
We’re expecting price to come down and retest the $7,480 level – we will be watching closely for signs of strength at this point and may enter long depending on the price action.
Of course, it is entirely possible that price slips down further to the $7,200 level. - beyond this we could likely be exposed to the low $6,000 levels.
We’re not certain at this point and CIM is happy to be watching from the sidelines. As always, we will be sure to keep you updated with our views.
keep in touch
Selling pressure is weighing down on the overall BTC market however, we did see a strong rebound at the $7480 level.
As can be seen from the chart, this level has historically been a strong resistance level and is now acting as a support.
We’re expecting price to come down and retest the $7,480 level – we will be watching closely for signs of strength at this point and may enter long depending on the price action.
Of course, it is entirely possible that price slips down further to the $7,200 level. - beyond this we could likely be exposed to the low $6,000 levels.
We’re not certain at this point and CIM is happy to be watching from the sidelines. As always, we will be sure to keep you updated with our views.
keep in touch
Historically BNB outperforms the market in bear cycles, allowing traders to mitigate their losses on their long positions or swing trade and make some nice gains.
Interesting observations. I wonder whether the opposite is true. Do BNB and the other exchange tokens go down during bullish markets? At the time of writing BTC is currently sitting at $7,572 – a 6.9% decline over the last 24 hours. Other market leaders like Ethereum and EOS have also seen declines in the region of 4-6%. One notable stand-out performer in this downward market cycle is Binance's native token. BNB token has held strong posting a gain of 0.75%. This is nothing spectacular but it is nice to see a bit of green in a sea of red.
Typically when the market does behave like this, exchange tokens like BNB, KCS, COSS...etc outperform the market. For the sake of this explanation, we will refer solely to the Binance exchange token – BNB.
During bear cycles traders exit BTC and ALT’s to enter fiat, Tether or exchange tokens. The additional fee’s and potential tax implications associated with entering and exiting fiat are a deterrent. Likewise, entering Tether has its own drawbacks too, namely the sacrifice of potential USD gains that could be made by holding something that has a fluctuating value.
The one that remains is BNB which is a dividend paying exchange token from arguably the most trusted exchange in cryptocurrency today - Binance. Historically BNB outperforms the market in bear cycles, allowing traders to mitigate their losses on their long positions or swing trade and make some nice gains.
In times like these, we sometimes employ a strategy wherby we Tether 50% and enter BNB with the other 50% of the funds produced when exiting our BTC and ALT positions. In addition to opening shorts, this strategy allows us to diversify some degree of risk out of our portfolio. Risk management is job number one for any serious trader, no matter what type of market you are in. This is a mentality lost on many cryptocurrency traders but is a discipline we bring from trading traditional markets like FOREX.
It is important to remember why markets behave the way that they do. We have just witnessed a long period of sustained growth, albeit slow growth in crypto time, but growth nonetheless. There always has to be a correction that follows periods of growth and that is what we are witnessing right now.
As the saying goes “you take the stairs up and the elevator down”. It is always amusing to see the dramatic overreactions of others during corrections like these, many claiming the sky is falling. Just like every time winter rolls around, people are amazed at how cold it is – memory is selective, we only want to remember the good times.
Our previous stops set at $7,750 were hit and we are now retesting some strong support at $7,500. If we break this support we may very well drop below $7,000 again although we would expect some support at the $7,200 level. We will continue to monitor how this move plays out and will be keeping tight stops on our BNB position.
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