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🔥 Tricky market: who and why dropped BTC
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Another catastrophe of the crypto market risks becoming a new negative trend. Bitcoin has lost more than 11% in a week but is trying to develop a «bearish rally» and storm serious buyer protection in the $26,000 zone. Pressure on quotes is exerted by several fundamental events.
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So…
• The scandalous Evergrande (about 40% of China's home sales) still filed for bankruptcy - the government is no longer trying to save it.
• The US Federal Court granted the SEC's request to accept the appeal a month after the decision was made in favour of
Ripple. The decision of July 13, which the market saw as a strong positive for XRP, could be reversed.
• Legal claims by the US authorities against large crypto exchanges, primarily Binance, and the reformatting of crypto market volumes in favour of smaller exchanges.
• The real imbalance of the market towards purchases on long-term and medium-term open positions, which began to form in the spring.
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These events led to a total liquidation of «long» positions of investors for about $820 million.
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The price of BTC/USD has reached a critical support zone, which has been holding back the fall for almost a year, although last week some sites recorded a technical low in the $23,500-24,200 zone. Some major players are interpreting the current combination of technical indicators very optimistically, but it is too early for Bitcoin to turn around.
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History shows that unsuccessful attempts to retest the $25000-25500 zone provoke a corrective growth of BTC/USD by 35-60%, but the closing of 2-3 daily bars below $24800 will cause serious damage to the daily and weekly dynamics. With no positive fundamentals added to the markets, BTC/USD maintains strong potential for further declines with a $20,000 target.
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So we are closely following the market and are not in a hurry with purchases on the correction.
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Profits to y’all!