To all those who track financial markets and asset classes, yesterday was a clear Black Monday. The global equity markets and commodities crashed as fears over the slowing Chinese economy once again gained prominence.
Bitcoin too had its forgettable session yesterday as it cracked more than 13 percent intraday to hit a sub-$200 low. What’s even more concerning is that the crucial support of $220-225 has been breached decisively, which has opened up the downsides to the target of $170-190.
Technically, the violation of this support is a great indication that bears will exert even more pressure in the coming sessions and rallies up to the previous support must be used to go short.
Bitcoin Chart Structure – As the global asset classes fell, panic spread to the Bitcoin markets as well as safety of funds became more important. The support was pierced on a very high volume suggesting that both the investors as well as short-term bulls were left with bloodied hands.
Moving Average Convergence Divergence – The MACD has fallen to a 7-month low of -15.7274