Bitcoin
BTC$18 928.29

-1.09%

Ethereum
ETH$1 294.66

-3.51%

Tether
USDT$1.000070

0%

USD Coin
USDC$1.000014

0.01%

Binance Coin
BNB$274.74

-1.09%

XRP
XRP$0.500514

-0.70%

Crypto the home of the brave and the risk tolerant


08 Sep 2021

#Bitcoin

There would have been some pain among Crypto longs, with $3.71b liquidated across the exchanges over the past 24 hours. While we’ve seen close 14,000 Bitcoin futures contracts traded, which is huge. For those still in long Crypto positions, the possibility of a re-run of this sort of movement in the coming 48 hours is a critical consideration, while the bulls are making the claim that the liquidation has now played out. Consider the high-to-low percentage range in Ethereum has been 24% - some five times the 5-day average range, while Ripple saw a 31% high to low range – this is clearly home of the brave.

For intra-day traders, this sort of two-way pronounced movement could be a prosperous trading backdrop, but of course, that's determined by one’s strategy. Most are pinning the move seen between 00:30 AEST and 01:10 AEST on news that El Salvador was having technical issues, with President Nayib Bukele first complaining that the Bitcoin app was not available on Apple or Huawei – later taking to Twitter to push the government's Bitcoin app, only for it to struggle with the demand in user registrations. This seems an odd reason to cause such aggressive moves.

BTC Daily high-low % range

Daily high-low % range

Ethereum intra-day move

There has been some focus on mining difficulty, or the amount of resource needed to mine Bitcoin. The level of ‘difficulty’ has been increasing as miners migrate operations away from China in the wake of the crackdown, and this is having an impact on margins. Miners are the backbone of the project and they will cut back on mining if it’s less profitable to do so - so if the price gravitates towards the cost of production, then it can cause ripples (pun intended) in the market.

Most notably this has been a flow driven move – and when price started to crack the savvy buyers likely sensed the flow, pulled their orders and it wouldn’t have taken much for the price to drop quickly on some sizeable sell orders. The sheer extent of the liquidations going through the market meant as price rolled over-leveraged longs and other players would have taken a loss and it all aggregated into a one-way move.

We also need to consider the extent of the bullish moves since July – perhaps in anticipation of El Salvadore adopting Bitcoin as legal tender, but there are obviously other reasons. Just taking a few coins for example, Bitcoin had rallied 80%, Ethereum 130% and Ripple 175% - so this was a market that was perhaps overloved in the short-term.

Could it also be that the liquidity beneficiaries – which could include crypto – may be sensing more normalised future policy setting from major central banks – perhaps higher real rates could become a headwind? Crypto is a momentum vehicle after all and when that momentum is challenged it pays to be closest to the exit when the fire breaks out. As we see from spikes in the trading range fires do happen periodically. The question Crypto traders now face is the possibility of another liquidity inspired volatility move, or has this provided an attractive opportunity to get set for another move higher?

As always in this environment it pays to truly understanding one’s risk and correct position sizing is critical – but the increased volatility and premise for rapid potential profits is certainly a clear drawcard for those who can harness the vol.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 84% 26 $18 928.29 -1.09% -4.04% $362 675 162 554 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72.8% 54 $1 294.66 -3.51% -5.75% $158 627 858 840 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $1.000070 0% 0% $67 959 464 596 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 91.6% 1 $1.000014 0.01% -0.01% $49 594 307 856 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 90.8% 15 $274.74 -1.09% 1.13% $44 325 985 527 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 63.2% 74 $0.500514 -0.70% 26.97% $24 950 009 051 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000119 0% 0% $20 519 701 371 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 79.2% 32 $0.447321 -2.92% -3.50% $15 312 533 995 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 84.8% 28 $32.55 -3.85% 0.89% $11 545 262 081 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 90.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 88.4% 15 $0.061629 -4.48% 3.07% $8 176 334 390 DOGE 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 78.8% 41 $6.22 -3.37% -7.84% $6 968 389 291 DOT 7 days price change
13 Dai (DAI) DAI Dai predictions 93.6% 1 $0.999457 -0.02% -0.02% $6 926 301 960 DAI 7 days price change
14 Polygon (MATIC) MATIC Polygon predictions 73.6% 55 $0.746252 -3.07% -5.23% $6 518 004 616 MATIC 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 76.4% 42 $0.000011 -4.47% -2.59% $6 105 472 299 SHIB 7 days price change

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