#CZCallsBitcoinAHardAsset #OilPricesDrop
🔻 ₿ Bitcoin (BTC ): down around 3%–5%
🔻 Altcoins: dropping harder, around 6%–12
🔻 High-risk / low-cap coins: some falling 15%+
After a recent downward movement in the cryptocurrency sector, it appears that investors have taken notice.
Currently $BTC is down somewhere in the range of 3-5%, which is enough to slow down momentum for Bitcoin; however, as with previous movements, when Bitcoin moves lower, altcoins typically move lower at an even greater rate. Most altcoins are experiencing declines in the 6-12% range, while some smaller or higher risk coins are seeing decreases greater than 15%. This serves to illustrate how fast sentiment can change literally overnight.
Movements on the scale seen in the market are an everyday occurrence - typically seen following an extended period of positive momentum. Traders typically take profit after a positive moment, liquidate leveraged positions, and reset the market for future movements.
What appears to currently be happening in the market is as follows:
1) There have been profit taking based on recent gains
2) Excessive levels of leverage are being purged from the market
3) Short-term trader fear appears to be spreading throughout the trader community.
Interestingly, while many inexperienced investors panic when the market makes moves like this; however, many of the seasoned veteran investors will watch closely waiting for their opportunity to reposition before the majority of traders are positioned back into the market.
The big question now isn't 'why did the market move' but 'after the shakeout where will the market see its next move?'
If Bitcoin can hold above the key support level, then we could see the market revert back to calm very quickly (i.e. not repeat a volatile movement). Conversely, if Bitcoin breaks below that support, we would likely see an increase in volatility across the sector (i.e. repeat of previous).👀📊🚀
#US-IranTalks #US-IranTalks #US5DayHalt
