News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • RT @breakingmkts: *PAYPAL SAID TO EXPLORE PURCHASE OF SOCIAL MEDIA FIRM PINTEREST $PYPL $PINS
  • Wondering if $MS will drop its fire and ice scenario at some point or continue to call for a major pullback in stocks? #trading $SPX $DJI $RUT
  • Risk appetite is on the hunt for record highs to start the New York session with Bitcoin hitting the mark at $66,000 and the S&P 500 within easy reach of 4,545. DailyFX's @JohnKickligther discusses what is ahead today! https://t.co/HRDercEcMU
  • $DJIA about to hit its all time high https://t.co/dX26Ib4Bbc
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.68% 🇦🇺AUD: 0.49% 🇨🇦CAD: 0.36% 🇬🇧GBP: 0.15% 🇪🇺EUR: 0.11% 🇯🇵JPY: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JfRnr21NMZ
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 0.59% Wall Street: 0.43% US 500: 0.39% FTSE 100: 0.08% Germany 30: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/nCnqh3uZfw
  • Heads Up:🇺🇸 Fed Evans Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-10-20
  • Poll: Do you think the S&P 500 will close out Wednesday with a 6th consecutive session's advance or will there be a pullback? Will it end with a record high close?
  • After a gap and crawl higher to start the trading day, the $SPX is now within a tenth of a percent from record highs. This index is working on its 6th consecutive advance https://t.co/VyEQuPClHb
  • The era of UK Quantitative Easing (QE) is coming to an end and the Bank of England (BoE) may well start increasing interest rates in early 2022 as inflation begins to stalk the UK economy. Get your market update from @nickcawley1 here:https://t.co/rYFNS9hcsT https://t.co/9nrLVRXlD7
Bitcoin (BTC), Ethereum (ETH) Crumble, Alt-Coins Hammered - Will Buyers Step Back In Again?

Bitcoin (BTC), Ethereum (ETH) Crumble, Alt-Coins Hammered - Will Buyers Step Back In Again?

Nick Cawley, Strategist

Bitcoin (BTC/USD), Ethereum (ETH/USD), and Alt-Coins Price, Analysis and Chart:

  • Cryptocurrencies slump - US capital gains tax fears cited.
  • Turkish cryptocurrency exchange Thodex crashes, clients unable to access assets.
  • Fourth double-digit sell-off this year – volatility is back with a bang.

A sharp sell-off in the cryptocurrency may offer further opportunities to get onboard the crypto-train if the prevailing market narrative is to be believed although the volatile nature of the move may cause some to hold back for a while. The last leg of the recent sell-off is thought to be due to US President Joe Biden’s capital gains tax proposals for the wealthy, although this plan may prove difficult to get through the house. The recent sell-off has knocked nearly $500 billion off the market’s capitalization, now $1.838 trillion, so if buyers are interested, they will have the opportunity to pick up coins at a decent discount to recent levels.

Bitcoin, Ethereum Collapse on Biden Tax Plan

Turkish Crypto Exchange Under Fire

Another negative for the cryptocurrency market this week was news that the Turkish crypto exchange, Thodex, had shuttered, leaving tens of thousands of investors at risk. The Turkish authorities - already looking to ban cryptocurrency transactions – have today launched an investigation into the platform and detained 62 people involved with the Istanbul-based exchange. The company’s founder and CEO, Faruk Fatih Ozer, was not arrested as he is feared to have already fled the country.

Alt-Coins Under Pressure

The largest losses seen over the last week have been in the alt-coin space with heavy double-digit reversals seen across the board. The alt-coin market has been in overdrive this year with many coins shows huge gains, the most prominent example being Dogecoin which at one stage was up 8,000% since the turn of the year. A lot of alt-coins have very small market capitalizations and trade at a fraction of a dollar, with buyers hoping that they have found, and got it on, the ‘next Bitcoin’ ahead of the crowd.

Will History Repeat Itself?

While the current market is under pressure, a look at Bitcoin’s daily chart over the past few months shows that double-digit sell-offs and subsequent recoveries have already happened three times this year. This may give hope to holders and new investors who will cite history repeating itself for being in the market. The daily chart also clearly shows the oversold nature of the market, using the CCI indicator, and this may add to the bull’s arguments. The technical set-up however tells a slightly different story with the recent sell-off negating the bullish series of higher lows. Bitcoin has also made a decisive break below the 50-day simple moving average, a technical indicator that has provided support since October 2020.

Bitcoin (BTC/USD) Daily Price Chart (October 2020 – April 23, 2021)

Bitcoin Chart

Ethereum has been making headlines this week as it continues its recent outperformance of Bitcoin. The Ethereum/Bitcoin spread hit its highest level since August 2018 yesterday, before backing off today. When this market settles down, this trend looks likely to resume.

Bitcoin (BTC/USD) Slide Resumes, Ethereum (ETH/USD) Continues to Outperform

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What are your views on Bitcoin (BTC), Ethereum (ETH/USD) and the Alt-Coin space – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES