$BTC 24 Hour High $47,405
$BTC 24 Hour Low $440,769
$BTC -11.3% past 24 hours; -7.2% past 7 days
Global equity sell-off hits crypto
Good morning. Chinese real estate giant Evergrande’s potential collapse has stirred both the global equity and crypto markets. Despite the sell-off, the total liquidations of the crypto markets are still very subdued — twice as low as what we saw at the beginning of September, indicating how little leverage the market has used. The market remains bullish in the mid-to-long term despite being bearish in the short term.
At present, BTC dominance has a touch higher at 42.4%, suggesting more people are moving back from altcoins to hold BTC. Over to the daily chart, $BTC has moved downwards and is now trading above the 111-d MA, after testing the 42.5K support. This moving average is of great importance, as it forms part of the “Pi cycle top indicator”, one of the most accurate indicators that try to identify when markets have peaked. 38K is the next target likely in play. As global equities continue to suffer, $BTC may follow.
$ETH retreated to test the critical support at 2,900, a range high from May. To the downside, $2,600 serves as ultimate support, which is the bottom of the logarithmic trading corridor since May last year. However, there is still some room to run down as the RSI has not hit the oversold area. If we don’t fall through on the downside, will it be the last big shakeout that we see in the markets before a bullish end of the year?
Cryptocurrencies’ market cap plunged by 11% to under $1.9T on Monday, compared to the day before, reflecting over $250B of value being wiped out. BTC also fell 9% to under $43K and $ETH fell 10% to under $3K, which marks the lowest levels seen since early August. Arguably, the plunge resulted from the panic selling triggered by Evergrande’s $305B worth of liabilities, and the risks of the company’s potential collapse affecting the broader market.
Learn more from today’s Trader View video.
Digital assets market:
- Total crypto market capitalization stands at $1.92T, -11.4% from yesterday
- $BTC is down 1.7% at time of writing, support / resistance – 41,310 / 48,500
- $BTC liquidations and funding: $882M, -0.0029% average
- $ETH is down 1.5% at time of writing, support / resistance – 2,450 / 3,650
- $ETH liquidations and funding: $372M, +0.0154% average
Alts and DeFi watch:
- DeFi TVL: $80.54B
- $AVAX down 19.5% in the last 24 hours, up ~3.3% in the past week
- $SHIB down 13.8% in the last 24 hours, up ~5.6% in the past week
- $GRT down 15.7% in the last 24 hours, down ~19.9% in the past week
- $EOS down 16.0% in the last 24 hours, down ~15.7% in the past week
More news that caught our eye:
- Traders buy the BTV dip even as Evergrande’s implosion rocks stock markets
- Institutional investors increase their crypto holdings for 5th straight week
- Medical company to accept crypto payments including BTC, ETH, DOGE
- NYDIG report: BTC provides value that far outweighs its energy cost
- Brazil’s biggest investment bank BTG Pactual to offer BTC and ETH
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