Volatility Lies Ahead for Bitcoin After Market Shakeout

CHART: Bitcoin Stabilizes Around $46K After Selloff; Resistance at $50K

The latest moves in crypto markets, in context By the CoinDesk Markets Team Edited by Bradley Keoun, Managing Editor, Markets September 8, 2021 Sponsored by     Bitcoin (BTC) -9.4%  $46,162 Ether (ETH)  -10%  $3,351 (Price data as of September 8 @ 10:30 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.  Good morning, and welcome to First Mover. Here's what's happening this morning: Market Moves: Bitcoin Trades Weak After Tuesday's Leverage Washout, Analysts See More Price Volatility Ahead Technician's Take: Bitcoin Stabilizes Around $46K After Selloff; Resistance at $50K   And check out the CoinDesk TV show "First Mover," hosted by Christine Lee and Emily Parker at 9:00 a.m. U.S. Eastern time. Today's show will feature guests: Sanchan Saxena, Coinbase Jeffrey Reed, Finxflo – Bradley Keoun Biggest Movers These are the biggest movers in the CoinDesk 20 over the past 24 hours:   Gainers: Algorand (ALGO): +25% Losers: Filecoin (FIL): -18% EOS (EOS): -18% Chainlink (LINK): -18% The Graph (GRT): -17% The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges. A message from AAX Powered by London Stock Exchange Group Technology, AAX offers a wide range of crypto products and services, including spot and futures for over 90 trading pairs, P2P fiat trading, high yield savings, research, education, OTC and more institutional offerings.  110 USDT futures bonus upon registration Trade at $0 fees (limited-time offer) 60% APY on AAX Savings, including BTC, ETH & USDT Support for 20+ fiat currencies 24/7 customer service Arguably the finest crypto trading app in the space Make the most out of your crypto holdings. Grow with AAX. Sign up now. Market Moves by Omkar Godbole Bitcoin Trades Weak After Tuesday's Leverage Washout, Analysts See More Price Volatility Ahead   Bitcoin remains on offer as market sentiment remains weak in the wake of Tuesday's leverage-driven price slide, the dour mood in equity markets, and negative crypto newsflow.   The cryptocurrency is currently trading near $45,300, representing a 3% drop on the day. Prices fell by 11% on Tuesday and reached as low as $40,000 on some exchanges, reportedly due to the forced closure of long positions in the derivatives market and liquidity shortage caused by exchange downtimes and market makers going offline.   After a big decline and leverage washout, traders tend to be less confident or more risk-averse for some time. That often results in flat-to-negative market action we see at press time.   Additional bearish pressure could be stemming from the U.S. Securities and Exchange Commission's (SEC) attempts to stop the Nasdaq-listed crypto exchange Coinbase from launching its lending program offering 4% annualized yields. That's a significantly higher return than the 1.5% yield offered by the U.S. 10-year Treasury note and could bring strong inflows to the crypto market.   "U.S. authorities [are] standing in the way of innovation. $100 trillion of negative real yields on global bonds drives investors into high-yielding cryptocurrency," Dan Tapiero, founder of DTAP Capital LLC, tweeted early today. Chart shows bitcoin's implied price volatility versus realized volatility. (Source: Skew.) Last, risk-off in traditional markets could be keeping bitcoin bulls at bay. Major European equity markets are currently nursing a 1% loss on growth concerns, and futures tied to the S&P 500 are down 0.5%. Meanwhile, the U.S. dollar is gaining ground against major currencies.   Bitcoin's options market is signaling higher near-term price volatility relative to the volatility seen in recent weeks. The cryptocurrency's three-month implied volatility (IV) or expectations for price turbulence over the next 12 weeks stands at 4.8% and realized volatility (RV) is seen at 4%.   The spread has narrowed slightly from 100 basis points to 80 basis points in the past 24 hours as realized volatility has increased from 3.8% to 4% following yesterday's drop. Experts foresee more volatility ahead. Read the original story here: Bitcoin Trades Weak After Tuesday's Leverage Washout, Analysts See More Price Volatility Ahead Technician's Take by Damanick Dantes, CMT Bitcoin Stabilizes Around $46K After Selloff; Resistance at $50K Bitcoin is stabilizing around the 200-day moving average at $46,000 after a sharp selloff on Tuesday. The cryptocurrency is down about 8% over the past 24 hours as sellers are in control of the $50,000 resistance zone.   Upside momentum has slowed over the past month, although buyers were able to defend support around the $42,000 breakout level achieved Aug. 6. Buying could be limited, however, as overhead resistance remains strong around the $55,000-$60,000 range. The relative strength index (RSI) on the four-hour chart is the most oversold since the August 6 breakout above $42,000. This could encourage buyers to return around current support levels. However, upside appears to be limited as the RSI on the daily chart is declining from overbought levels last month. A lower price high from April is likely as volatility returns this month, limiting buyer strength in the aftermath of Tuesday's selloff. Bitcoin daily price chart shows the market appearing to find support around the 200-day moving average. (TradingView, CoinDesk)   Read the original story here: Bitcoin Stabilizes Around $46K After Selloff; Resistance at $50K A Message from ErisX ErisX has one of the lowest fee structures in the industry. We offer low transaction fees, low Blockchain fees, and do not charge for storage.  We also provide instant credits for passive order flow.  Watch this video for more information about our Get Paid to Rest program.   Open an account, refer a friend, and you are both rewarded $50 after they make their first trade. ICYMI In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:   In a Global First, El Salvador's Bitcoin Law Now in Effect "First Mover" talks to Japanese exchange Liquid Group COO Seth Melamed as crypto hacks become more frequent this year. What measures are Liquid Group taking to prevent hacks like this from happening again? In a global first, El Salvador's bitcoin law is now in effect. Steven McClurg, CIO & co-founder of Valkyrie, shares his takes on its meaning and implication for the crypto community. Plus, the SEC is reportedly investigating DeFi exchange Uniswap Labs. Nikhilesh De, CoinDesk's Global Policy & Regulation managing editor, provides his insights. Latest Headlines SEC Threatened to Sue Coinbase Over Lending Product, CEO Says The securities regulator is threatening to sue Coinbase should the exchange launch its Lend product, Brian Armstrong claimed in a Twitter thread. Bitcoin Miner Profits Remain High Despite Surges in Mining Difficulty The 4.5% increase on Tuesday was the fourth consecutive upward difficulty adjustment. But it's slowing. SubQuery Gets $9M in Series A to Improve Access to Blockchain Data on Polkadot Funding will go toward accelerating SubQuery's technical and community roadmap, among other pursuits. BlackRock to Use Axoni Blockchain for Equity Swaps Citi and Goldman Sachs already use Axoni's platform. Invesco Mutual Files for Blockchain Fund in India The mutual fund will primarily invest in the company's Elwood Global Blockchain UCITS ETF. Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.  First Mover A newsletter from CoinDesk Copyright © 2021 CoinDesk, All rights reserved.  250 Park Avenue South New York, NY 10003, USA You can manage your preferences here or unsubscribe from all CoinDesk email.