Bitcoin, Ethereum, Dogecoin: New lower lows with new worries
Looking at the chart on the four-hour time frame, we see that Bitcoin made a new lower low at $ 39863 yesterday. After that, we have a price withdrawal to the current $ 42625. With the Fibonacci level setting, our current resistance is at 38.2% Fibonacci level at $ 43,286. If the resistance is found to be still persistent, we can easily see a further price pull and deeper below $ 40,000. For the bullish scenario, we need a stronger bullish impulse that will raise the price above $ 44,000 in the zone 50.0-61.8% Fibonacci level. Upstairs, resistance awaits us in the form of a declining trend line that has resisted previous attempts to continue on the bullish side.
Ethereum chart analysis
Looking at the chart on the daily time frame, we see that yesterday’s price made a new lower low to $ 2650, and after that, we have a smaller recovery to the current $ 2920. We are now looking to see if the price will manage to return above $ 3,000 and continue on the bullish side with positive consolidation. If the price manages to continue on the bullish side, our next important target is the zone around 61.8% Fibonacci level at $ 3278. Additional resistance is in our MA50 and MA200 moving averages.
Dogecoin chart analysis
Looking at the chart on the four-hour time frame, we see that the price of Dogecoin is still in negative consolidation, still testing the zone around 0.20000. We are still moving in a falling channel, and for a possible turnaround to the bullish side, we need a break above the first MA20 moving average. Only after that we can expect the price to rise to the next moving average, and the main target at this time frame is the upper resistance line with a resistance of the MA200 moving average in the zone of about 0.26000.
Crypto futures worth more than $ 1.2 billion were liquidated in just one day.
This is happening because world markets are still worried about the potential collapse of Chinese real estate giant Evergrande.
According to the analytical platform, a total of $ 1.2 billion in crypto futures has been liquidated in the last 24 hours as global markets continue to slide.
The ongoing decline has resulted in a wave of liquidations on crypto derivatives trading platforms. This is because when markets experience a drop or rise, over-indebted positions are automatically liquidated because traders can no longer meet their margin requirements.
Of course, long trading positions – where traders bet on rising prices – formed the lion’s share of today’s liquidations. According to Bybt, 83.53% of liquidated positions have been long in the last 24 hours, accounting for nearly half a billion dollars.
In recent days, it is not just the crypto market that is in decline; other markets, including the S&P 500, the Dow Jones Industrial Average, and global stock markets, are also in decline.
Many analysts attribute the decline in the global market to recent concerns about Evergrande, China’s highly indebted real estate giant. According to CNBC, the potential collapse of the troubled company could even affect the global economy as a whole.
“Evergrande is a systemically important company,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office. “If China had a serious economic problem because of China’s Evergrande, the rest of the global economy would be infected with it.”
Once the world’s biggest cryptocurrency hope, it is now issuing strong warnings to the industry that it is in danger of repeating the echo of the toxic culture ahead of the 2008 financial crisis.
As head of the Currency Controller’s Office, Michael Hsu argued Tuesday that cryptocurrencies and decentralized finance could develop into threats to the financial system in the same way that certain derivatives brought it to collapse more than a decade ago. He said that the infamous credit default swaps were made by mathematical wizards in the same way that cryptocurrencies emerged.
“Crypto / DeFi is on a path today that looks similar to the CDS in the early 2000s,” he told the Hsu Blockchain Association on the website. “Fortunately, this group has the power to change paths and avoid a crisis.”
The OCC was previously led by former Coinbase Global Inc. CEO Brian P. Brooks, who ran a pro-crypto endowment to establish policies that are welcome to the industry and give bank charters to some of the companies. When he was appointed to the OCC by Finance Minister Janet Yellen, Hsu put his crypto-acceptable policy on hold and was among regulators calling for a new, unified approach across all agencies.
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