Crypto SnippetApril 22, 2021
Crypto Snippet - Bitcoin - 19 April 2021
Crypto Snippet is a brief overview of the crypto market; focused on Derivatives. This is not financial advice.
Crypto Pair: BTC-USDT
Date: 19th April 2021
Bitcoincouldn’t hold its upward momentum post the Coinbase listing. Several factors including insider selling by Coinbase senior employees, exacerbated liquidations of leveraged long positions and lower hashrate due to power outage in China led to ~15% correction on Sunday. There were however, signs of excessive exuberance in the market and a correction looked imminent. We saw sharp moves in smaller altcoins such as DOGE, ETC, BSV, which were posting 50-100% daily gains on Friday, Saturday while the bellwether, Bitcoin, was struggling to hold its ground.
Subsequently, we saw BTC slipping below its 50 DMA at ~$56,000.50 DMA has been a crucial support for Bitcoin since October last year and it has held this support every time in this rally. This time around however, we see Bitcoin’s momentum fizzling out and BTC struggling to hold this support.A conclusive breakdown below the 50 DMA can lead to a sharp price correction to 40K levels. BTC will find next support at its 200 DMA, which is around $36K. Only a move above $60K, which is a key resistance for any bull-trap rally, will help restore confidence that the bull trend is intact.
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