AENZO LABS

After a heavy crash on Thursday bitcoin bulls are still struggling to stop the king of the cryptocurrencies from falling further. Is this it, or is there more to go?

A precipitous drop

A palpable nervousness had beset the crypto market over the previous week. All eyes were on bitcoin as it continued to traverse down in its bull flag. Given the pattern, many were expecting the apex crypto to finally break out to the upside and confirm the bull market.

However, bears had other ideas.

Things really started getting serious on Thursday evening as bitcoin suddenly painted an hourly red candle to the downside, of a whopping 9.6%.

This reached the $25,000 price level where bulls were waiting in numbers to buy the asset back up. A wick back to $26,250 resulted - all in the space of the same hourly candle.

A healthy correction

Around 12 hours later and bitcoin is moving sideways, with the market waiting for the next direction to become apparent. Bitcoin is currently at a reasonable area of support at $26,500, which is just above the 0.786 Fibonacci level. The next very strong support below is at $24,250.

The upwards trendline has been broken and so has the 200-day moving average, both incredibly important supports if bitcoin is + maintain its bull momentum. However, the weekly candle does not close for another couple of days or so, giving bulls a chance to at least potentially regain the 200-day MA at $27,250.

Looking at the chart, it does look like bitcoin just came to the bottom of a range it entered back in March of this year, with the bottom of the range at $25,000 and the top at $31,000.

So far, this looks like a healthy correction, given the incredible thrust upwards since the beginning of this year. Even if bitcoin were to go lower, $25,000 is a huge platform to sustain the price.

Bull market still intact

Some investors may have been cursing their luck at missing the giant step up out of the bear market. This correction, or even if bitcoin were to go back down to $25,000, would be great areas to start building a position.

If investors are still nervous. thev only need to look at the other available asset options, all of which are tied into the monetary system. Even gold and silver are manipulated by the paper futures market.

Bitcoin may have corrected, but there is certainly no reason for panic. Phase 1 of the bull market is still very much intact, and phase 2 can potentially begin next year when bitcoin gets above the $31,000 level.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Bitcoin had been relatively stable for weeks, but it suddenly dropped to its lowest level in two months yesterday. The largest cryptocurrency by market capitalization was trading for $26,060 per coin at the time of writing, down more than 11% in the past seven days.

The crash was likely caused by a combination of factors, including uncertainty in the wider economy and low liquidity in the Bitcoin market. As the price of Bitcoin fell, it triggered a cascade of liquidations, where traders were forced to sell their positions due to margin calls.

It is still unclear who caused the crash, but it is unlikely to be due to any major news or events. The market is simply becoming more volatile as it matures, and these types of crashes are becoming more common.

Here are some of the specific factors that may have contributed to the crash:

•Uncertainty in the wider economy. The global economy is facing a number of challenges, including rising inflation and interest rates. This uncertainty has led to investors becoming more risk-averse, and they have been selling off riskier assets like Bitcoin.

• Low liquidity in the Bitcoin market. Liquidity refers to the ease with which an asset can be bought or sold. When liquidity is low, it means that there are fewer buyers and sellers in the market, which can make it more difficult to sell an asset without causing the price to fall.

• Cascade of liquidations. When the price of Bitcoin started to fall, it triggered a cascade of liquidations, where traders were forced to sell their positions due to margin calls. This selling pressure further exacerbated the crash.

The U.S. Securities and Exchange Commission (SEC) announced today that it is postponing its decision on the Bitcoin spot exchange-traded fund (ETF) proposed by Ark Invest and 21Shares.

The SEC said it needed more time to consider the application made by the Cboe BZX Exchange on behalf of the sponsors.

The SEC also requested comments from interested parties on the application, specifically the sponsors' surveillance- sharing agreement with the BTC spot market.sharing agreement with the BTC spot market.

However, some experts explained that the request for comment does not mean the approval or rejection of the SEC. James Seyffart, ETF analyst at Bloomberg Intelligence, tweeted that requesting comment is standard procedure and shouldn't be over-commented:

He also added that the SEC is seeking comment on the proposed Coinbase Share of Custody Agreement, which is a key factor in determining whether the ETF will meet th requirements of the Exchange Act.

The SEC has set a new deadline, November 14, 2023, to make a final decision on Ark Invest's Bitcoin ETF.

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1. **Educate Yourself:** Before you start trading, take the time to learn about blockchain technology, different cryptocurrencies, and the mechanics of trading. Understanding the basics is crucial to making informed decisions.

2. **Do Your Research:** Always research the projects behind the cryptocurrencies you're interested in. Understand their technology, team, use case, market trends, and potential for adoption.

3. **Diversify Your Portfolio:** Don't put all your funds into a single cryptocurrency. Diversification helps spread risk and minimizes potential losses from a single asset's poor performance.

4. **Risk Management:** Only invest what you can afford to lose. Cryptocurrency markets can be highly volatile, and it's essential to manage risk by not investing more than you can handle emotionally or financially.

5. **Set Clear Goals:** Define your trading goals, whether they're short-term gains, long- term investments, or a mix of both. Having clear objectives helps guide your decisions.

6. **Use Secure Exchanges:** Choose reputable and secure cryptocurrency exchanges for trading. Ensure they have a strong track record of security measures to protect your funds.

7. **Stay Informed:** Keep up with the latest news and developments in the cryptocurrency space. Market sentiment be influenced by news events, regulations, and technological advancements.

8. **Avoid Emotional Trading:** Trading decisions should be based on logic and analysis rather than emotions. Emotional trading often leads to impulsive decisions and losses.

9. **Use Technical Analysis:** Learn basic technical analysis to understand price charts, patterns, and indicators. Technical analysis can help you make more informed entry and exit decisions.

10. **Have a Trading Plan:** Develop a well- defined trading strategy that outlines entry and exit points, risk-reward ratios, and stop- loss levels. Stick to your plan and avoid chasing fads or making sudden changes.

#crypto2023 #trading

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