The crypto currency market crashes massively a day after Bakkt Bitcoin Futures trading debut
Bitcoin dropped more than 13% on Wednesday in the Asian session and fell below $ 9,000 for the first time since mid-June. The crypto currency dropped more than 20% to $ 8,110.1 in the previous session, the largest intraday decline since January 2018.
The rest of the market, including the major Altcoins, followed Bitcoin with its own measure of the downfall. Bitcoin Cash ABC (-25%), Bitcoin Cash SV (-22.84%) and EOS (-25.09%) saw the biggest losses of the day. Ripple’s XRP (-12.85%) saw the most modest loss of the day.
The lackluster start of long-awaited Bitcoin futures and the general mood to avoid risk were cited as possible catalyst for the meltdown. Weakening investor sentiment and declining equity markets are also putting pressure on Bitcoin. Wall Street closed lower at night and Asian stock markets traded mostly in the red today amid political concerns in the US and intensifying US-China trade disputes.
The disaster came just a day after Bitcoin Futures, which are physically settled, launched on the ICE-backed Bakkt exchange. But the new futures contract had a drab start. However, the daily volume is expected to increase over time as institutional investors are still accustomed to the new trading service.
The LTC/USD bulls are trying to re-enter the area at $ 60
Litecoin crashed 16.5% on Tuesday. Following Monday’s 8% drop, Litecoin closed the day at $ 55.22. Following the broader crypto currencies market, Litecoin jumped from its low $ 55.22 earlier this morning and peaked at $ 57.66.
For the day ahead, Litecoin will have to break above the lower limit of Bolinger Bands at $ 59 to keep the positive momentum to the first major resistance level at $ 60.
The Relative Strength Index (RSI) of the daily chart is trying to get out of the oversold zone. This means that the digital asset has been extremely sold out and the reversal is imminent, but it may take some time for it to materialize. Litecoin will need support from the wider market to break the $ 60 level.
In addition, the MACD indicator is deep in the negative area. The negative divergence on the H4 chart emphasizes the presence of sales pressure. At the same time, the correction of the 50-day SMA to the 100-day SMA at $ 71.99 suggests that downside consolidation will dominate before we can see a significant reversal.
Failure to move through to $ 59 level, could see Litecoin take another tumble. A clear break below the morning low $ 55.22 would bring a further decline for testing $ 53 support before a possible recovery.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.