• Cryptocurrencies tumble between 15.00%-20.00% overnight. 
  • Bitcoin plummeted 15.00% to $7890, closed at the lowest level since June 2019. 
  • The descending triangle breakdown suggests more legroom.

The digital asset class dropped on Tuesday a few days after Bitcoin futures launched on NYSE. The most traded cryptocurrency Bitcoin fell $1770 or 15% to end at $8520, while Dashcoin and Ethereum dropped 20.00% and 18.00$ respectively. 

“The owner of the New York Stock Exchange launched its long-delayed market for bitcoin futures Sunday, a high-profile bet that consumers, businesses, and Wall Street will embrace cryptocurrencies.” WSJ reported.

“The New York Stock Exchange, launched its bitcoin futures contracts as a way to usher in investors who have been hesitant about trading cryptocurrency. Those futures are “physically deliverable,” meaning they pay out in bitcoin instead of those from ICE competitor CME Group, which introduced its own futures contracts two years ago that pay out in cash.” CNBC reported. 

Continuous selling pressure dragged the cryptocurrencies to the key support levels.

It’s possible to make the case that the Bitcoin has now nearly completed wave C in an A-B-C corrective structure. 

  • A-B-C structure: 9974-9015-12310 points to $7550
  • A-B-C structure: 12310-9254-10933 points to 7890$, overnight low

The market appears to have completed a 3- wave sequence from June 2019 high, which we forecast the level of $7550 on mid-August.

 

It the above is the correct interpretation, everything since the June 2019 high should be considered within the context of a corrective process. Bottom of the range is down at $7890-7550. Breaking lower than $7550 would further confirm the broader downside bias and open up the possibility of $7000 its 200MA and 20MA (Monthly). 

Whereas by considering the descending triangle chart pattern, the price may go as far as below $5000 level, the lowest level since April 2019. 

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