Do I seriously need to dig the graves again?
You be the judge.
This is the hourly chart of bitcoin and boom, that massive drop. The little secret here is our PXI called it before any major action started. We are now 25% clear on spot and over 200% on bitmex with 10x from the SHORT.
You don't wanna miss the sweet deal on this baby, head over to hashedplutus.com to grab yours.
https://www.tradingview.com/x/868qe2PL/
You be the judge.
This is the hourly chart of bitcoin and boom, that massive drop. The little secret here is our PXI called it before any major action started. We are now 25% clear on spot and over 200% on bitmex with 10x from the SHORT.
You don't wanna miss the sweet deal on this baby, head over to hashedplutus.com to grab yours.
https://www.tradingview.com/x/868qe2PL/
https://www.tradingview.com/x/ZXEIwgMi/
Bitcoin and the 100 MA
Hello all, welcome to the technical analysis of bitcoin especially after the huge drop on 1 day trade session. let's enjoy this!
Today is a very difficult day for bitcoin, which we can see that the price has dropped nearly 30% comparing to the open price. With this drop, it has invalidated every long bias even for short term or longer term. In this technical analysis of bitcoin, I want to use the extra indicator that I usually uses whenever the price has a huge drop like this which is the 1000 MA on the daily chart. We can see that this 1000 MA has acted as a strong dynamic support since the first time it occured. The last time the price of bitcoin breached this dynamic support was at November 2018 - March 2019 , when we know that there was a consolidation moves at that time. And today, officially the price has breached again this dynamic support after a long time ago.
And looking at the historical performance of the price when it consolidated when it had breached this dynamic line, I'll expect a similar consolidation pattern too, beside the price is still trending around the strong support zone of the golden pocket region. However, breaching the 1000 moving average as a long period of dynamic support level is not looking good at all, I will look for further confirmation of the price to identify my bias later when the price has less volatility in the future. Jumping in the market is not a wise decision for now.
Bitcoin and the 100 MA
Hello all, welcome to the technical analysis of bitcoin especially after the huge drop on 1 day trade session. let's enjoy this!
Today is a very difficult day for bitcoin, which we can see that the price has dropped nearly 30% comparing to the open price. With this drop, it has invalidated every long bias even for short term or longer term. In this technical analysis of bitcoin, I want to use the extra indicator that I usually uses whenever the price has a huge drop like this which is the 1000 MA on the daily chart. We can see that this 1000 MA has acted as a strong dynamic support since the first time it occured. The last time the price of bitcoin breached this dynamic support was at November 2018 - March 2019 , when we know that there was a consolidation moves at that time. And today, officially the price has breached again this dynamic support after a long time ago.
And looking at the historical performance of the price when it consolidated when it had breached this dynamic line, I'll expect a similar consolidation pattern too, beside the price is still trending around the strong support zone of the golden pocket region. However, breaching the 1000 moving average as a long period of dynamic support level is not looking good at all, I will look for further confirmation of the price to identify my bias later when the price has less volatility in the future. Jumping in the market is not a wise decision for now.
Here is the 2D chart, clear as water. 63% drop and yep, PXI called it. If you cared to Leverage trade that, you would be 6x your investment.
DM @cryptopotatoes or head to hashedplutus.com to save the rest of your investments
https://www.tradingview.com/x/j2cMDLWv/
DM @cryptopotatoes or head to hashedplutus.com to save the rest of your investments
https://www.tradingview.com/x/j2cMDLWv/
https://www.tradingview.com/x/2qjvSkQc/
Bitcoin : Don't ever follow the majority
Happy Saturday to all of you! In this current analysis, I will cover about the bitcoin's possible moves from the weekly time frame.
Before we start, let's take a look at the historical moment of the bitcoin between April 2019 - June 2019. There was a huge parabolic movement to the upside and most of the crypto people said that they might not see the $5000 region again. But, guess what? Now the price is trending right around the $5000 - $6000 region which once again invalidate bias of all the majority. Now, at the support, I see a lot of people who think that they're an expert is telling us to open short position! This doesn't make sense, that's why I suggest you to not gaining any trust to the majority. Make your own strategy and identify your own risk limit.
Talking about current bitcoin technical chart, I do believe that currently the price has formed my 3 favorite of break out strategy phases. Assuming the bullish falling wedges that has been broken previously, we've never seen the upper line of this wedges to be tested again. And with this current huge down side moves, it's officially being tested again. Look at the price action when price touched this region which has an alignment with the lower line of the yellow support trend line, which has formed since 2017. The weekly candle rejected very hard when the price touched this area. Assuming the strong support zone, I'll expecting a pull back and the weekly candle to close slightly above the white region which indicating that once again the price is respecting this zone. If the price can sustain above the white region, we might see the price to test the upper yellow resistance trend line which is in confluence with the 78.6 fib retracement ($8000 - $9100). At first, I'll wait for the micro level to form any sign of reversal to enter long.
Bitcoin : Don't ever follow the majority
Happy Saturday to all of you! In this current analysis, I will cover about the bitcoin's possible moves from the weekly time frame.
Before we start, let's take a look at the historical moment of the bitcoin between April 2019 - June 2019. There was a huge parabolic movement to the upside and most of the crypto people said that they might not see the $5000 region again. But, guess what? Now the price is trending right around the $5000 - $6000 region which once again invalidate bias of all the majority. Now, at the support, I see a lot of people who think that they're an expert is telling us to open short position! This doesn't make sense, that's why I suggest you to not gaining any trust to the majority. Make your own strategy and identify your own risk limit.
Talking about current bitcoin technical chart, I do believe that currently the price has formed my 3 favorite of break out strategy phases. Assuming the bullish falling wedges that has been broken previously, we've never seen the upper line of this wedges to be tested again. And with this current huge down side moves, it's officially being tested again. Look at the price action when price touched this region which has an alignment with the lower line of the yellow support trend line, which has formed since 2017. The weekly candle rejected very hard when the price touched this area. Assuming the strong support zone, I'll expecting a pull back and the weekly candle to close slightly above the white region which indicating that once again the price is respecting this zone. If the price can sustain above the white region, we might see the price to test the upper yellow resistance trend line which is in confluence with the 78.6 fib retracement ($8000 - $9100). At first, I'll wait for the micro level to form any sign of reversal to enter long.
🎓Market Update🎓
Greetings Traders! It has been intense in the markets over the past two weeks. Its safe to say that Bitcoin has not performed like a security in the midst of a global crisis. In truth there are not many assets commodities or stocks that are able to withstand this kind of turmoil these days. The USD remains the king of security. As they say - "Cash Is King" 💰
With this volatility, there are massive opportunities to profit as a trader. Bitcoin price action seems to be governing the chart patterns on a great deal of the crypto assets, especially on the USD pairs. There is also no doubt a visible correlation between traditional markets and the way they have been crashing. This leads to crypto traders to being cautious over the weekend in anticipation of the Monday open. The lower timeframes crypto charts demonstrate this behaviors on the charts with the drawn out symmetrical wedge formations.
The big question remains, long or short on crypto assets going into the new week.
Greetings Traders! It has been intense in the markets over the past two weeks. Its safe to say that Bitcoin has not performed like a security in the midst of a global crisis. In truth there are not many assets commodities or stocks that are able to withstand this kind of turmoil these days. The USD remains the king of security. As they say - "Cash Is King" 💰
With this volatility, there are massive opportunities to profit as a trader. Bitcoin price action seems to be governing the chart patterns on a great deal of the crypto assets, especially on the USD pairs. There is also no doubt a visible correlation between traditional markets and the way they have been crashing. This leads to crypto traders to being cautious over the weekend in anticipation of the Monday open. The lower timeframes crypto charts demonstrate this behaviors on the charts with the drawn out symmetrical wedge formations.
The big question remains, long or short on crypto assets going into the new week.
🎓Mashed Market Map🎓 View HQ PDF
🎓Mashed Market Commentary🎓
Dominance - This chart shows us the low down on the market activity over the past few weeks, The Altcoin Rally from earlier this year is marked out in green. This helped establish a new range for this indicator. The rally eventually relented and bitcoin took over with dominance again. Then comes the first signs of the crash in early March. The wild volitility shows this perfectly, with neither Bitcoin or Altcoins coming out on top.
BTC USD - Wild sell off on BTC cleared the entire 4 bar pitchfork channel in one sweep. This is frightening but it must also bring conference to buy into this range. Contact with the bottom line on this setup should be profitable. The impulse sell has made contact once already, and the price bounced. BTC currently trapped in the lower band and the upped band here has presented some resistance so far.
ETH USD - Just as bloody as BTC, or even more so considering where Ethereum lies low. Unfortunately, It looks as if the asset still has room to fall based on a similar falling pitchfork channel. Steady interaction has been seen with this channel to date. Much contact trapped inside this lower channel throughout the run up to 2020, and then fair contact with resistance on the Alt coin run at the start of the year. If all that is true, we could expect to buy Ethereum at $90!
Fear Greed - The remarkable fear green index tells us just how we all feel right now. The index hit is all time low a few days ago, giving a reading of 2%! Its hard to make sense of a number like that on this indicator, but I guess that means it can't get much worse, and the market could be rounding for a bottom. The numbers are indeed up today, and they are on the up and up. 8 points yesterday, 12% today.
Total Damages - Total damage on the market has been rather low considering the obliteration we saw during the crash of last week. The volatility is still there through and the numbers are indeed above average. 26 million USD on the perpetual BTC contract on Bitmex alone. Trading has been a bit slower as we wait for larger markets to go live on Monday.
RSI Heatmap - Altcoin heatmap is quite something to look at right now. The volume on these top assets are quite extraordinary with the top 5 assets raking in over 100k BTC in volume over the last 7 days. The RSI reading are rather high across the board, and this is largely thanks to the fact that BTC, the underlying asset has also been under performing. The RSI reading on the USD pairs are flashing off buy signals much more vigorously with many assets indicating over sold conditions bellow 30 on the 4h time frame.
To conclude - The symmetrical wedge formations appear to represent tremendous risk. With so many of them building up and looking the same, Id rather wait for a break on the structure before hedging my bets on a coin flip. This type of consolidation can easily continue downhill. Seeing how the rest of the markets respond in the new week will give indications to the crypto markets. With that said, there are assets which have appeared to break out of these structures. See LOOM, GNT, BTS, FTT. These are also early signs that the rest of the patterns might play out well.
Dominance - This chart shows us the low down on the market activity over the past few weeks, The Altcoin Rally from earlier this year is marked out in green. This helped establish a new range for this indicator. The rally eventually relented and bitcoin took over with dominance again. Then comes the first signs of the crash in early March. The wild volitility shows this perfectly, with neither Bitcoin or Altcoins coming out on top.
BTC USD - Wild sell off on BTC cleared the entire 4 bar pitchfork channel in one sweep. This is frightening but it must also bring conference to buy into this range. Contact with the bottom line on this setup should be profitable. The impulse sell has made contact once already, and the price bounced. BTC currently trapped in the lower band and the upped band here has presented some resistance so far.
ETH USD - Just as bloody as BTC, or even more so considering where Ethereum lies low. Unfortunately, It looks as if the asset still has room to fall based on a similar falling pitchfork channel. Steady interaction has been seen with this channel to date. Much contact trapped inside this lower channel throughout the run up to 2020, and then fair contact with resistance on the Alt coin run at the start of the year. If all that is true, we could expect to buy Ethereum at $90!
Fear Greed - The remarkable fear green index tells us just how we all feel right now. The index hit is all time low a few days ago, giving a reading of 2%! Its hard to make sense of a number like that on this indicator, but I guess that means it can't get much worse, and the market could be rounding for a bottom. The numbers are indeed up today, and they are on the up and up. 8 points yesterday, 12% today.
Total Damages - Total damage on the market has been rather low considering the obliteration we saw during the crash of last week. The volatility is still there through and the numbers are indeed above average. 26 million USD on the perpetual BTC contract on Bitmex alone. Trading has been a bit slower as we wait for larger markets to go live on Monday.
RSI Heatmap - Altcoin heatmap is quite something to look at right now. The volume on these top assets are quite extraordinary with the top 5 assets raking in over 100k BTC in volume over the last 7 days. The RSI reading are rather high across the board, and this is largely thanks to the fact that BTC, the underlying asset has also been under performing. The RSI reading on the USD pairs are flashing off buy signals much more vigorously with many assets indicating over sold conditions bellow 30 on the 4h time frame.
To conclude - The symmetrical wedge formations appear to represent tremendous risk. With so many of them building up and looking the same, Id rather wait for a break on the structure before hedging my bets on a coin flip. This type of consolidation can easily continue downhill. Seeing how the rest of the markets respond in the new week will give indications to the crypto markets. With that said, there are assets which have appeared to break out of these structures. See LOOM, GNT, BTS, FTT. These are also early signs that the rest of the patterns might play out well.
https://www.tradingview.com/x/xUUeJEcw/
Bitcoin : Weekly candle close is the key
From the 1 week time frame, we can see that the price is trying very hard to close above the red dynamic level which is the 200 moving average as a strong support level line. If we see a close above this level, there will be a short term bounce to challenge the price above the white region of $6500. But, if the price can't close above it, we will see the potential retest toward the yellow support trend line. Currently, the patience is everything.
Bitcoin : Weekly candle close is the key
From the 1 week time frame, we can see that the price is trying very hard to close above the red dynamic level which is the 200 moving average as a strong support level line. If we see a close above this level, there will be a short term bounce to challenge the price above the white region of $6500. But, if the price can't close above it, we will see the potential retest toward the yellow support trend line. Currently, the patience is everything.
https://www.tradingview.com/x/XUlHESW0/
ETHBEAR March16th, 2020
Here is one of the requested instrument from our members. ETHBEAR is currently below the resistance level of yellow based on the price action. we might see several taps toward this yellow zone in the near future before we break it. But, if it losses the 10 level, we might see further drop.
ETHBEAR March16th, 2020
Here is one of the requested instrument from our members. ETHBEAR is currently below the resistance level of yellow based on the price action. we might see several taps toward this yellow zone in the near future before we break it. But, if it losses the 10 level, we might see further drop.
https://www.tradingview.com/x/lsQAMxO0/
ETHBULL March 16th, 2020
Based on the price action, there is still a room of going down. But we must remember that the prior broken support is at the 492 level which is likely to be tested in near future as resistance. I still see a possibility of claiming back this prior broken support that could indicate a bounce in ETH price.
ETHBULL March 16th, 2020
Based on the price action, there is still a room of going down. But we must remember that the prior broken support is at the 492 level which is likely to be tested in near future as resistance. I still see a possibility of claiming back this prior broken support that could indicate a bounce in ETH price.
https://www.tradingview.com/x/ucfJE024/
Bitcoin : After the weekly candle closed
Hello all, here is the bitcoin technical analysis right after the weekly candle has closed. Let's make it quick and to the point.
The weekly candle has closed below the white support zone with a huge net volume in negativity. It has dropped for more than 50% comparing to its opening price at the beginning of the last week. This will be a hard time for bitcoin and current crypto market because this is the most biggest drop for bitcoin in 1 week session of trading since the first time this market exist.
Currently the price has broken down the white support but it's still just slightly above the yellow support trend line. We must prepare for the worst time to come with the major support below. Red line is the major support below. The
yellow support trend line has held the price since 2017 and simply this is the 3 years trend line. breaking below it, could be serious.
Bitcoin : After the weekly candle closed
Hello all, here is the bitcoin technical analysis right after the weekly candle has closed. Let's make it quick and to the point.
The weekly candle has closed below the white support zone with a huge net volume in negativity. It has dropped for more than 50% comparing to its opening price at the beginning of the last week. This will be a hard time for bitcoin and current crypto market because this is the most biggest drop for bitcoin in 1 week session of trading since the first time this market exist.
Currently the price has broken down the white support but it's still just slightly above the yellow support trend line. We must prepare for the worst time to come with the major support below. Red line is the major support below. The
yellow support trend line has held the price since 2017 and simply this is the 3 years trend line. breaking below it, could be serious.
▪️ ETH USD - View Chart
The extreme level ($90 entry) has not yet been tagged on Ethereum, price just just touched the green box buy level, but the three digit $100 appears to be representing significant support for now.
The extreme level ($90 entry) has not yet been tagged on Ethereum, price just just touched the green box buy level, but the three digit $100 appears to be representing significant support for now.
▪️ BTC USD - View Chart
Levels buy levels on the Mashed Market Map have been effective. The channel has indeed held up as support up until now, and the Bitcoin price is testing resistance on the upper level of the lower inner band of the pitchfork. Price is trading +8% from the entry call at $4950
Levels buy levels on the Mashed Market Map have been effective. The channel has indeed held up as support up until now, and the Bitcoin price is testing resistance on the upper level of the lower inner band of the pitchfork. Price is trading +8% from the entry call at $4950
🎓 Market Commentary 🎓
With these levels on crypto considered, and the conventional markets open. It appears as though we might see a little relief this week. We are going to post a few signals on altcoins and try to make some extra cash in these uncertain times. Lets see what the market has to offer.
With these levels on crypto considered, and the conventional markets open. It appears as though we might see a little relief this week. We are going to post a few signals on altcoins and try to make some extra cash in these uncertain times. Lets see what the market has to offer.
🎓#SpotTrade 🎓
🎓 $NANO / USDT - View Chart
🔸Signal Info: Nano
Rank: #61
Exchange: Binance (Trade)
Direction: LONG
🔸Analysis: Nano has been pretty heavily hammered on both the USD and Bitcoin base pairs. The fib levels set here are off extreme high and low wicks and they appear to be legit based off previous price action. We are looking at the 12h time frame here, and our PXI indicator signals a buy.
Risk on the trade is above average considering the conditions in the market. Profit levels are also above average, so just considering the volatility we are dealing with before opening a position.
Higher level targets might be out of reach for a week, but if we can keep this position open long enough, this could also be a brilliant long term entry.
🔸Current Price: $0.3680
❇️Entry: $0.3430
🎯Take Profit: $0.4730, $0.6050, $0.7960
♦️Stop Limit: $0.2975 (-13%)
PS - Like our work on Tradingview
🎓 $NANO / USDT - View Chart
🔸Signal Info: Nano
Rank: #61
Exchange: Binance (Trade)
Direction: LONG
🔸Analysis: Nano has been pretty heavily hammered on both the USD and Bitcoin base pairs. The fib levels set here are off extreme high and low wicks and they appear to be legit based off previous price action. We are looking at the 12h time frame here, and our PXI indicator signals a buy.
Risk on the trade is above average considering the conditions in the market. Profit levels are also above average, so just considering the volatility we are dealing with before opening a position.
Higher level targets might be out of reach for a week, but if we can keep this position open long enough, this could also be a brilliant long term entry.
🔸Current Price: $0.3680
❇️Entry: $0.3430
🎯Take Profit: $0.4730, $0.6050, $0.7960
♦️Stop Limit: $0.2975 (-13%)
PS - Like our work on Tradingview
TradingView
🎓#SpotTrade 🎓 $NANO / USDT 🎓 for BINANCE:NANOUSDT by HashedPlutus
🔸 Signal Info: Nano
Rank: #61
Exchange: Binance
Direction: LONG
🔸Analysis: Nano has been pretty heavily hammered on both the USD and Bitcoin base pairs. The fib levels set here are off extreme high and low wicks and they appear to be legit based off previous…
Rank: #61
Exchange: Binance
Direction: LONG
🔸Analysis: Nano has been pretty heavily hammered on both the USD and Bitcoin base pairs. The fib levels set here are off extreme high and low wicks and they appear to be legit based off previous…
🎓#SpotTrade 🎓
🎓 $BTS / USDT - View Chart
🔸Signal Info: Bitshares
Rank: #76
Exchange: Binance (Trade)
Direction: LONG
🔸Analysis: Bitshares was mentioned on Sunday. I like this asset for the way it has been responding to the crash. I suspect this might be because of all the stable assets on the platform. Either way, things look great after charting it out tonight.
First off, pitchfork channel doesn't disappoint. Stunning reaction from the underside of the channel for deep bounce on the asset. Price reacted with a +60% bounce exiting the channel completely to the upside. Things then came back to settle in the upper band, and went on to start testing the support resistance in this zone.
Our PXI signals a buy on this 4h time frame, which conveniently aligns with a breakout from this channel. A micro rising wedge triangle has also been spotted and plotted out. That's double apex on the breakout, and a setup I would happily trade myself.
Going for a bit of a ladder entry on this one, to try and push the stop as far as possible into the lower band of the pitchfork channel.
🔸Current Price: $0.01450
❇️Entry: $0.01405, $0.01285
🎯Take Profit: $0.01795, $0.02360
♦️Stop Limit: $0.1190 (-11.5%)
PS - Like our work on Tradingview
🎓 $BTS / USDT - View Chart
🔸Signal Info: Bitshares
Rank: #76
Exchange: Binance (Trade)
Direction: LONG
🔸Analysis: Bitshares was mentioned on Sunday. I like this asset for the way it has been responding to the crash. I suspect this might be because of all the stable assets on the platform. Either way, things look great after charting it out tonight.
First off, pitchfork channel doesn't disappoint. Stunning reaction from the underside of the channel for deep bounce on the asset. Price reacted with a +60% bounce exiting the channel completely to the upside. Things then came back to settle in the upper band, and went on to start testing the support resistance in this zone.
Our PXI signals a buy on this 4h time frame, which conveniently aligns with a breakout from this channel. A micro rising wedge triangle has also been spotted and plotted out. That's double apex on the breakout, and a setup I would happily trade myself.
Going for a bit of a ladder entry on this one, to try and push the stop as far as possible into the lower band of the pitchfork channel.
🔸Current Price: $0.01450
❇️Entry: $0.01405, $0.01285
🎯Take Profit: $0.01795, $0.02360
♦️Stop Limit: $0.1190 (-11.5%)
PS - Like our work on Tradingview
TradingView
🎓 #SpotTrade 🎓 $BTS / USDT 🎓 for BINANCE:BTSUSDT by HashedPlutus
🔸Signal Info: Bitshares
Rank: #76
Exchange: Binance
Direction: LONG
🔸Analysis: Bitshares was mentioned on Sunday. I like this asset for the way it has been responding to the crash. I suspect this might be because of all the stable assets on the platform.…
Rank: #76
Exchange: Binance
Direction: LONG
🔸Analysis: Bitshares was mentioned on Sunday. I like this asset for the way it has been responding to the crash. I suspect this might be because of all the stable assets on the platform.…
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
https://www.tradingview.com/x/xUUeJEcw/ Bitcoin : Weekly candle close is the key From the 1 week time frame, we can see that the price is trying very hard to close above the red dynamic level which is the 200 moving average as a strong support level line.…
https://www.tradingview.com/x/J22Aqave/
Bitcoin : Still about the 1000 moving average
Hello all, here is the technical analysis of current market structure in this consolidation stages of bitcoin. Let's enjoy!
The market is however trending at a very risky level. I can't say that the movement isn't volatile enough because of the fact that in this current sideways market, it moves in 33% of volatility. This however is very volatile when it comes to consolidation zone. But, with this volatility, I still see that it is still forming a random pattern out of nowhere. Opening any position at this rate especially for the leverage trading account could easily end up at being liquidated with this volatility and uncertainty.
The price is still trending slightly above the yellow support trend line and below the 1000 moving average. Whenever the price is trending below the 1000 moving average, there will be a lot of faking out movement with huge liquidation rate (similar with previous price action that occured between December 2018 - April 2019). I will expect this consolidation structure to end up longer that I've expected previously and I'm truly expecting a potential type of triangle pattern to be formed during this consolidation so we can decide the next movement with lower risk to enter any position.
For the bias, I'll expecting a bounce toward the moving average 1000 to be tested only if the price doesn't breaks below this yellow support trend line.
Bitcoin : Still about the 1000 moving average
Hello all, here is the technical analysis of current market structure in this consolidation stages of bitcoin. Let's enjoy!
The market is however trending at a very risky level. I can't say that the movement isn't volatile enough because of the fact that in this current sideways market, it moves in 33% of volatility. This however is very volatile when it comes to consolidation zone. But, with this volatility, I still see that it is still forming a random pattern out of nowhere. Opening any position at this rate especially for the leverage trading account could easily end up at being liquidated with this volatility and uncertainty.
The price is still trending slightly above the yellow support trend line and below the 1000 moving average. Whenever the price is trending below the 1000 moving average, there will be a lot of faking out movement with huge liquidation rate (similar with previous price action that occured between December 2018 - April 2019). I will expect this consolidation structure to end up longer that I've expected previously and I'm truly expecting a potential type of triangle pattern to be formed during this consolidation so we can decide the next movement with lower risk to enter any position.
For the bias, I'll expecting a bounce toward the moving average 1000 to be tested only if the price doesn't breaks below this yellow support trend line.
The world might have to wait for a while until normal order resumes, but in the Bitcoin derivatives market, panic is seeping away, for better or for worse.
Last week, on 12 March, Bitcoin saw its worst price drop in 7 years, losing a third of its value in less than a day. Futures traders, in a bid to capitalize on the volatility, or rather to salvage some returns, sold off their positions, pushing volume up over $30 billion and pushing Open Interest down.
This collective and severe trading and volatility rush saw massively skewed trades, given the rapid nature of the price depreciation. In a matter of just two days, derivatives exchanges saw their B/O spread rise to significant month-long highs as imminent price movement was anyone’s guess. But, now it looks like liquidity is returning.
According to data from Skew markets, the B/O spread for major exchanges, those catering to deep-pocketed and retail investors, are simmering down. BitMEX, the Seychelles-based derivatives exchanges known for its tight trading, saw its $10 million B/O spread surge to 4.07 percent on 13 March, while the average for the past three months stood at 0.42 percent. At press time, the spread had dropped to 1.57 percent.
During this time, Futures trading has dropped considerably, owing to the stability of Bitcoin’s price over the past few days. The 24-hour trading volume across unregulated exchanges has dropped considerably since last week as well, down to just below $14 billion, while traders have closed out positions even as the United States is being kept afloat by stimulus packages from the Federal Reserve.
Last week, on 12 March, Bitcoin saw its worst price drop in 7 years, losing a third of its value in less than a day. Futures traders, in a bid to capitalize on the volatility, or rather to salvage some returns, sold off their positions, pushing volume up over $30 billion and pushing Open Interest down.
This collective and severe trading and volatility rush saw massively skewed trades, given the rapid nature of the price depreciation. In a matter of just two days, derivatives exchanges saw their B/O spread rise to significant month-long highs as imminent price movement was anyone’s guess. But, now it looks like liquidity is returning.
According to data from Skew markets, the B/O spread for major exchanges, those catering to deep-pocketed and retail investors, are simmering down. BitMEX, the Seychelles-based derivatives exchanges known for its tight trading, saw its $10 million B/O spread surge to 4.07 percent on 13 March, while the average for the past three months stood at 0.42 percent. At press time, the spread had dropped to 1.57 percent.
During this time, Futures trading has dropped considerably, owing to the stability of Bitcoin’s price over the past few days. The 24-hour trading volume across unregulated exchanges has dropped considerably since last week as well, down to just below $14 billion, while traders have closed out positions even as the United States is being kept afloat by stimulus packages from the Federal Reserve.