From a market perspective, there isn’t much to say on days like today. Bitcoin’s (BTC) breakdown starting last Sunday culminated yesterday in a truly astounding capitulation event – along with altcoins, as well as traditional markets – the likes of which the leading crypto has nary ever seen. The main takeaway of this is that, Bitcoin’s high timeframe uptrend – still intact just a day ago – is now utterly destroyed. From a technical perspective, there is now no basis of expectation within the markets.
On the 3-day chart, we see the scope of the carnage. Overnight, price fell completely through its retracement range, through the historic support of $6,400, wicking all the way down to near the bottom of the 2018 bear market. On all major exchanges, price dropped below $4,000 for the first time in nearly two years.
Market structure erased in a dayBTC chart by TradingView
From open to close, price fell about 38% percent in a single day: one of the largest Bitcoin losses ever in a single day. Again, all previous market structures within a yearly window have been unravelled.
Which means we have to go bigger. On the weekly chart, we see one possible scenario for Bitcoin price action for the rest of 2020, which is a sideways action within a roughly $3k range. Read More...