Derivatives data confirms the volatility; brace up traders

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
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Quick glance: The market has been highly volatile over the past couple of weeks owing to the ongoing socio-political tussle. Both the weekly candles have large upside wicks signaling weakness in the price action. The derivatives data also points to a massive volatility with put to call ratios highly fluctuating.

Market in the last 24hrs

The past 24 hours have been another highly bearish session for the cryptocurrency market. The largest crypto has lost more than 7% and the total market cap dropped to $1.74 trillion.

Today’s Trend analysis

On the weekly timeframe , the present candle is having a large upside wick. Although there is a sign of forming higher lows, there is no confirmation being observed yet. The key resistance lies over the $41,500 mark and a massive support lies at $28,000. The only silver lining to the current volatility is for an investor. On a long term basis, there is only a marginal reduction in the price.

However, for several traders, this has been nothing short of a nightmare. In the coming week, we can expect the volatility to continue.

In such cases, it is always prudent to hedge the positions.

Key levels to watch out for:

- Major resistance level: $41,500
- Key support level: $28,600
- Nearest strong support: $34,000


Price volatility remained very high at approximately 8.38%, with the day's range between $38,800 — $42054.2

Price at the time of publishing: $39,232.80
BTC’s market cap: $744.35 Billion
On a weekly timeframe:

Out of 11 Oscillator indicators, 7 are neutral, 3 are bearish and 1 is bullish .

Out of 15 Moving average indicators, 1 is 'NEUTRAL', 9 are bearish and 5 are bullish .

Indicator summary is giving a ‘SELL’ signal on BTCUSD .
Volumes have remained consistently low over the past few days.

The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 24-hour candles.

Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .

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