- Bitcoin Prices slumping
- Solactive and CMC launching two crypto indices
- Transaction volumes less than half those of late Feb
CMC in partnership with Germany’s Solactive will launch two crypto indices. Data broadcasts will be from several terminals including Bloomberg’s GDIS and Börse Stuggart. With information based on performance, Bitcoin (BTC) traders will be better equipped and trade accordingly.
Bitcoin Price Analysis
Fundamentals
At the time of writing and drawing data from CoinGecko, Bitcoin enjoys a dominance of 50 percent with a market cap of roughly $69,994 million. If anything, this points to uncertainty. All the same, we expect prices to stabilize in coming few days. With better tools to gauge volatility and influence of BTC, predicting price moves and measuring sentiment has been made easy with news of CoinMarketCap collaboration with Solactive.
The two plan to launch two crypto indices. One, CMC Crypto 200 Index (CMC200), will collect price movement data of the top 200 crypto assets weighed by market capitalization including Bitcoin. The other–CMC Crypto 200 ex BTC Index (CMC200EX) — won’t and helps in tracking the general performance of crypto assets without the influence of Bitcoin. Interested firms can draw data from Global Index Data Service (GIDS) of NASDAQ, Börse Stuggart, Refinitiv of Reuters and the Bloomberg Terminal.
Candlestick Arrangement
Bitcoin Prices are hovering at last week’s close. From the chart, it is clear that sellers have the upper hand and if bears manage to drive prices below the 20-day moving average, then BTC may collapse.
As we can see, we have a three-day bear reversal, but bulls are firm as prices are trading above $4,000 and Mar 16-21 lows. That’s roughly the 31.8 percent Fibonacci retracement level of Feb 24 high low and a region of interest as laid out in our last BTC/USD price analysis.
If prices sink below $4,000, aggressive traders should unwind their longs and wait for pullbacks above Mar 16 highs at around $4,200. At the same time, risk-averse, conservative traders should wait for full breaks above $4,500 as prices break free from the $1,300 of the last four months.
Technical Indicators
Mar 16 bull bar is our base bar. With decent volumes—13k, which is still lower than those of Feb 24—36k, bears are yet to reverse its gain. As aforementioned, any drop below $4,000 or the 20-day MA with high volumes above 13k could trigger a sell-off towards $3,800 forcing liquidation of longs. If not and there are counter bars driving prices above $4,200 with equally high volumes, then traders should brace themselves for a rally towards $6,000.