Technical Analysis of BTC/USD for October 7, 2020
Crypto Industry News:
More than 45,000 Bitcoins have been withdrawn from BitMex since the U.S. government filed allegations against the stock exchange and its management. October 1 brought two devastating blows from BitMex. First, the CFTC and DOJ brought charges against the stock exchange. Soon after, its founders (including CEO Arthur Hayes) were indicted by the US government. The market reacted to this news with a sharp drop in many of its largest assets.
This is not the first time in recent months that BitMex has contributed to a downward return. The stock market began to lose trust of its participants after the Black Thursday crash that prevented users from trading or recovering their assets. While users have withdrawn more than 100,000 Bitcoins in the six months between this episode and the latest allegations, the effects of the past two days appear to be unprecedented in scale.
According to Crystal Blockchain data, in less than 48 hours the net outflows from the exchange exceeded 45,000 Bitcoins. Meanwhile, Gemini and Binance appear to be the biggest beneficiaries of these outflows, which OKEx and Huobi are following. Over 20,000 BTC have been transferred from BitMex to these four exchanges.
It is unclear whether BitMex will disappear into the abyss of time like many previous failed exchanges, or whether the company will survive. Lance Morginn, CEO of Blockchain Intelligence Group and former Specialist Oversight Agent of the Department of Homeland Security, said the most likely outcome would be fines and a promise from BitMex management not to engage in illegal activities in the future.
Technical Market Outlook:
The BTC/USD pair has broke below the short-term trend line support at the H4 time frame chart around the level of $10,701 and made a local low at the level of $10,490. The next technical support is seen at the level of $10,430 and $10,344. If the yesterday’s low is violated, then the sell-off might accelerate again. The level of $10,758 is now the local high and it is the key level for bulls and the level of $10,093 is the key level for bears.
Weekly Pivot Points:
WR3 – $11,471
WR2 – $11,178
WR1 – $10,858
Weekly Pivot – $10,602
WS1 – $10,300
WS2 – $10,024
WS3 – $9,715
The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.
The material has been provided by InstaForex Company – www.instaforex.com