As most already know, we saw a major sell off during the Asia session. Several online reports attributed the plunge to speculation the U.S. Treasury may crack down on money laundering that’s carried out through digital assets. Overall, $9.2 billion in crypto long positions have been liquidated in the last 24 hours. It's about a 20% drop from the highs, which could indicate a healthy correction, but is the selling over?
What do we see at the moment. The current look is bearish. Bulls were not able to hold the very important 60k level. Price has broke the channel and fell through the first support and just touched the second major support level, it's finding ground and might close above on the daily candle which would be a good sign. Whenever a violent drop like this occurs, you will find a strong bounce as many traders are trying to catch a bottom. So it may appear like the selling is over but we don't know it's a bottom yet. I personally prefer to wait and see what happens and not catch a falling knife. This depends on your risk appetite.
Could this be the start of a new down trend as crypto markets cool off from their meteoric rise? Or is this a small correction and we will see a new bullish pattern emerge? The goal is as always, to have no bias and trade what you see. Don't panic. Protect your positions.
Stay tuned traders....
What do we see at the moment. The current look is bearish. Bulls were not able to hold the very important 60k level. Price has broke the channel and fell through the first support and just touched the second major support level, it's finding ground and might close above on the daily candle which would be a good sign. Whenever a violent drop like this occurs, you will find a strong bounce as many traders are trying to catch a bottom. So it may appear like the selling is over but we don't know it's a bottom yet. I personally prefer to wait and see what happens and not catch a falling knife. This depends on your risk appetite.
Could this be the start of a new down trend as crypto markets cool off from their meteoric rise? Or is this a small correction and we will see a new bullish pattern emerge? The goal is as always, to have no bias and trade what you see. Don't panic. Protect your positions.
Stay tuned traders....