Bitcoin endured its second drop in 24 hours to end Tuesday at $7,600, marking a thousand dollar drop in the timeframe. As we stated on Monday, this confirmed the break of the parabolic trend and put BTC firmly in the balance in terms of its next move, with all the signs pointing to a further downslide, at least in the short term. Almost all alts went with it, except the Binance IEO coins that found themselves in profit while the rest of the market tumbled.
Dive, Dive!
If Bitcoin wants to maintain the bullish momentum that has seen it cruise through resistance levels on its way to $9,000, it needs to hold the $7,400 level for a good few days. If this were to happen then $8,200 is the next resistance level it needs to cross before we can look once again at the magic $10,000 figure. What is much more likely however is a more continued downside, at least from a technical point of view.
While Bitcoin did bounce from $7,400 to $7,850, the buyback was particularly weak and the shorter-term moving averages show a leveling off and the beginnings of a downward curve, suggesting a trend reversal is imminent. If we do experience further downside, Fibonacci retracement indicates $7,200 (0.382) and $6,600 (0.5) as possible places to start layering in bids. The macro trend is still bullish, so this could be a great opportunity to pick up some more BTC before the next rally.
Binance IEO Coins Stay Afloat
Binance IEO coins provided something of an unlikely safe haven during the bloodbath, with CELR, MATIC, ONE, and FET all enjoying double-digit growth as scared investors plowed their money into the recently listed coins instead of stablecoins as is the usual pattern. This is a new phenomenon, and clearly these investors were convinced that the market makers that have propped up the price in recent weeks weren’t about to let it drop further.
Those who suggest that the huge gains and volatile trading present with newly listed coins may not entirely be the result of organic trading will no doubt point to instances like this to back up their claims, and the evidence of the last 24 hours is hard to ignore.
