The crypto king opened at $10,601 and quickly reacted to the BITMEX news. The price declined to $10,380 rather quickly. As of writing, the pair is holding a stable around the $10,500 level.
Bitcoin price prediction has taken a turn for the worse as the pair reacts to the BitMEX news. Legal proceedings have been initiated against crypto exchange BitMEX by the US Commodity and Futures Trading Commission (CFTC) along with the Federal Bureau of Investigation (FBI). Bitcoin price prediction has been driven lower as the news unfolds.
Bitcoin traders have suffered $18 billion worth of losses ever since the news hit the wire. More importantly, BitMEX has reported that long positions worth $20.3 million in BTC have been liquidated. Additionally, Coronavirus has entered the ‘White House’ and US President, and the first lady both are COVID-19 positive.
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Bitcoin price prediction in the last 4 hours
Bitcoin has fared relatively well, especially when compared to today’s Asian stock market movement. Despite numerous bearish omens, Bitcoin is down by 4.23 percent and still holding above the psychological $10,000 level.
Bitcoin movements in the 4-hour timeframe have been more or less stagnant. And that is a positive omen since bears have not been able to drive the price any lower. However, today’s sharp drop has created a double-top formation once it was rejected from the $10,900 mark for a second consecutive time in the past three days.
BTC/USD 4-hour chart – Quick recovery brings $11,000 into picture
The BTC/USD pair is already ripe for action, and the news can very well trigger a deeper correction. Traders will view the current news as sell signals and book profits on any new highs in the next 24 hours. Earlier today, the miniature crash saw the price breach the 50 and 200-day EMA signifying there’s no bottom in sight for now.
Bitcoin chart shows $10,380 as the 0.236 Fibonacci level, which helped the price bounce back. The tanking price can accelerate quickly to reach the psychological barrier of $10,000. Furthermore, bulls have reclaimed the $10,500 level within a few hours of the crash. But bearish clouds still hang over the BTC/USD pair, and upper price levels can witness more profit booking as the day progresses.
Weaker hands will exit the market
Weekly BTC/USD charts show a robust support zone between $10,180 and $9,900. Historically, Bitcoin S/R resistance range is also between these markers. Additionally, this region also represents the 0.618 Fibonacci level. If sellers pick up momentum, expect BTC/USD pair to bounce back from the $10,100 area and restart a bullish rally upwards.
$gold pumping, $btc dumping on this news.
i think, once and for all we can all agree that #btc is not correlated to gold and is correlated to equities, no chopping and changing whenever it suits our bias, this is how it is now. pic.twitter.com/AlMlW3MW15
— ?????Farmer Bluntz????? (@SmartContracter) October 2, 2020
The next crucial S/R level remains at $9,750, and it also represents the CME gap at $9,920. In case the price breaks the $10,000 psychological barrier, traders must expect the crypto king to touch the $9,700 mark.
Bitcoin price prediction – Will the shadow pullback last longer
To understand the depth of today’s pullback and get confirmed Bitcoin price prediction, it is vital to note the defenses underneath the current price levels. Today, $11,000 has once again emerged as extreme resistance as bears fiercely defend the $10,700 level close to the 20-day EMA. The 50-day SMA at $11,010 is the next immediate resistance.
The symmetrical triangle pattern is receiving more confirmation, especially in the past week’s price charts. Such a confusing pattern only creates more indecisive chart patterns indicating a stand-off between the bulls and the bears. The impasse will end only if the BTC/USD breaks out of this symmetrical triangle pattern to give a clearer Bitcoin price prediction.
The moving averages are biased downwards, as is reflected in their gradual declining slope. Also, the relative strength index is now approaching negative territory on the hourly charts, thereby giving more advantages to the bears. Furthermore, if price breaks below the symmetrical triangle, Bitcoin trades must expect a quick run towards the $9,835 level.
On a daily timeline, the long candlestick reflects accumulation by the bulls. Macro factors also show that bulls are using dips to accumulate for a longer timeframe. So, a correction in the price will only mean that bulls are loading up their ammo. If bulls can move past $11,170, then $12,450 will be the next pit stop for Bitcoin price prediction. However, traders must await the price to break the symmetrical triangle pattern.
Bitcoin price prediction – Conclusion
How Bitcoin fared to BitMEX and President Trump’s COVID positive news
Bitcoin reacted instantly to two macro news in the financial markets. First, the legal action taken by the FBI and CFTC sent crypto markets into a tizzy. Bitcoin long positions were liquidated immediately on the derivatives exchange resulting in huge losses. The crypto king’s market capitalization declined by a massive 8 percent immediately.
Secondly, the positive COVID-19 test results of US President Donald Trump and his wife sent shock waves throughout the global financial markets. A sea of red engulfed the stock markets across the world, and cryptocurrencies were no different. Altcoins and DeFi also turned red, and losses mounted as the day comes to an end.
However, Bitcoin has recovered most of the day’s losses and is now trading within a range bound channel. The macro news has so far proved to be only a blip on the hourly charts.
Disclaimer – The information provided is not a trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.