In Monday’s article, I suggested a downwards movement due to technical and macroeconomic indicators. It seems no asset is safe from pandemic uncertainty, at least for the short-term. This article will recap on bitcoin price movement and where I see it going in the next few days.
Global equities, precious metals, and even crypto have seen better days. Although crypto was relatively unaffected by a red equities market on Friday, it was not able to take another day of selling. Traditional markets suffered from uncertainty in corona cases, delayed stimulus, and banking scandals. It’s no surprise that markets are down, and it seems like they won’t get better until after the U.S. elections. My opinion of technology stocks being overvalued still stands. I believe we have another correction brewing, and it’s only a matter of time.
Bitcoin in Danger
Bitcoin is not free from market turmoil. We’re looking at another bloody day if the stock markets lead a sell-off. As of writing, bitcoin needs to keep a price above the $10k support level. If not, we’re looking at a revisit to mid-$9k levels. It seems like the bears have the upper hand and are not going to throw away this advantage that they have.
Ether Getting Hit Hard
Ether saw double the damage, having lost 8% compared to bitcoin’s 4% in price. Research firm, Skew, shows the Implied volatility, the market’s expectation of ether’s future price movement, has dipped below realized volatility, ether’s current movement based on historical data.
This signals ‘SHORT’ for technical traders as the entire options market has not seen this shift since July. The next support level that bears will be looking to break is $322 and then $288.
It seems that every trader in every market is preparing for volatile times ahead. It’s important at this time to look over your holdings and make sure you’re prepared for further market corrections.
*This is my opinion only and should not be taken as financial advice*