Bitcoin flash crashed today on some of the exchanges after the Asian market open, with waves of selling hitting the most valuable coin even before that. The digital currency fell below the $16,000 level (Bitstamp prices) marking a 20% decline from its recent all-time high, just after breaking below a major technical level, the previously dominant short-term uptrend line.
With the first major support level only found at $13,000 and the long-term picture being severely overbought, the break-down could lead to a deeper correction in the coming week, but short-term traders could play a bounce here, as the momentum readings are back near neutral territory for the first time in 10 days.
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Bitcoin Cash Hits Record Highs
Most of the major altcoins are also falling sharply, with only Bitcoin Cash benefiting from the shift in investor sentiment. BCC is up by 100% in the last two days, and the value of the forked coin is quickly approaching Ethereum’s market capitalization thanks to the break-out, rising above $60 billion in the wake of the Bitcoin correction.
BCC hit the targets of our recent buy recommendation during the move, and reached a significant new all-time high in recent hours, thanks to the technical break-out.
Bitcoin flash crashed today on some of the exchanges after the Asian market open, with waves of selling hitting the most valuable coin even before that. The digital currency fell below the $16,000 level (Bitstamp prices) marking a 20% decline from its recent all-time high, just after breaking below a major technical level, the previously dominant short-term uptrend line.
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BTC/USD, 4-Hour Chart Analysis
With the first major support level only found at $13,000 and the long-term picture being severely overbought, the break-down could lead to a deeper correction in the coming week, but short-term traders could play a bounce here, as the momentum readings are back near neutral territory for the first time in 10 days.
// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //
Bitcoin Cash Hits Record Highs
Most of the major altcoins are also falling sharply, with only Bitcoin Cash benefiting from the shift in investor sentiment. BCC is up by 100% in the last two days, and the value of the forked coin is quickly approaching Ethereum’s market capitalization thanks to the break-out, rising above $60 billion in the wake of the Bitcoin correction.
BCC hit the targets of our recent buy recommendation during the move, and reached a significant new all-time high in recent hours, thanks to the technical break-out.
BCC/USDT, 4-Hour Chart Analysis
Total Market Cap and Altcoins
The total value of the segment is falling thanks to the broad-based fall, plunging under the recently reached $600 billion level, as the gains of Bitcoin Cash are not enough to balance the losses in Bitcoin and altcoins.
Bitcoin flash crashed today on some of the exchanges after the Asian market open, with waves of selling hitting the most valuable coin even before that. The digital currency fell below the $16,000 level (Bitstamp prices) marking a 20% decline from its recent all-time high, just after breaking below a major technical level, the previously dominant short-term uptrend line.
// -- Discuss and ask questions in our community on Workplace.
BTC/USD, 4-Hour Chart Analysis
With the first major support level only found at $13,000 and the long-term picture being severely overbought, the break-down could lead to a deeper correction in the coming week, but short-term traders could play a bounce here, as the momentum readings are back near neutral territory for the first time in 10 days.
// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //
Bitcoin Cash Hits Record Highs
Most of the major altcoins are also falling sharply, with only Bitcoin Cash benefiting from the shift in investor sentiment. BCC is up by 100% in the last two days, and the value of the forked coin is quickly approaching Ethereum’s market capitalization thanks to the break-out, rising above $60 billion in the wake of the Bitcoin correction.
BCC hit the targets of our recent buy recommendation during the move, and reached a significant new all-time high in recent hours, thanks to the technical break-out.
BCC/USDT, 4-Hour Chart Analysis
Total Market Cap and Altcoins
The total value of the segment is falling thanks to the broad-based fall, plunging under the recently reached $600 billion level, as the gains of Bitcoin Cash are not enough to balance the losses in Bitcoin and altcoins.
ETH/USD, 4-Hour Chart Analysis
Ethereum also spiked lower by more than 15% compared to its recent record levels, and the price of the ETH token is testing last week’s highs as we speak. Litecoin, Ripple, NEO, ETC, and IOTA also followed BTC lower, but Dash is holding up well amid the spike in volatility and the correlated moves.
Will this correction turn out to be more than a brief sell-off and a trading opportunity for bulls is yet to be seen, but given the stretched setups segment-wide, correction risks remain high, so traders should still keep a lid on position sizes.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.