Crypto

Today’s sell-off across most major asset classes included Bitcoin as BTC fell to $10,265 at the lows. Since then BTC futures have recovered and currently as of 5 PM EST are trading at $10,505 down $375 (-3.45%) for the session.

Even though volume over the last five trading sessions was relatively low the significance of its speedy return to a bullish market impressed me especially when you look at how shallow the correction was. Yesterday’s small gain was enough to take prices back above the 23% Fibonacci retracement level ($10,697) of the nearly $8,000 climb since March.

Bitcoin futures are trading up 3.7% ($380) on the day and as of 4 PM, EDT is trading at $10,720 basis the most active futures contract on the CME. It seems as though Bitcoin futures found support at the 100-day moving average which happens to be right around $10,000. This support level is a relatively new occurrence in BTC and a very bullish one at that.

Ever since BTC futures hit a high of $12,635 on August 17^th the digital asset has been in a corrective phase, bringing down prices to just under $10,000.  However, yesterday marked the third day in which pricing found support at the 100-day moving average.

Since September 2^nd BTC most active futures contract has lost approximately $2,000 in value. What is worse is the last three trading days have had extended lows along with a massive spike in (double the daily average in August) daily volume. Also, the RSI has plummeted 20 points, and the bulls have given up three major support levels in these last four brutal trading sessions.