Skip to content
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
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) Slump -  Cryptocurrency Market Hammered

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) Slump - Cryptocurrency Market Hammered

Nick Cawley, Strategist

Bitcoin (BTC/USD), Ethereum (ETH/USD), Ripple (XRP/USD) Price, Analysis and Chart:

  • Bitcoin drops $10,000 from its all-time high.
  • Sell-off being slowly erased as buyers return.
Cryptocurrency Trading
Cryptocurrency Trading
Recommended by Nick Cawley
Get Your Free Introduction To Cryptocurrency Trading
Get My Guide

Bitcoin (BTC) volatility soared further over the weekend when a wave of selling sent the cryptocurrency market crashing, with coins showing heavy double-digit losses. Bitcoin fell from Friday’s all-time high around $42,000 to just over $32,000 while Ethereum (ETH) fell from $1,350 to just over $1,000 before ticking marginally higher. According to data from CoinMarketCap, trading volume in Bitcoin surged with over $100 billion changing hands in the last 24 hours.

How to Measure Volatility

This weekend’s sell-off comes after weeks of hefty gains in the cryptocurrency space, with Bitcoin making fresh all-time highs seemingly on a weekly basis. We have warned in recent updates that Bitcoin volatility was at extreme levels, and this remains the case, and traders must remain wary.

The UK Financial Conduct Authority (FCA) has just released a timely update on cryptoassets, warning that ‘investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money’.

The daily chart shows that Bitcoin has broken the recent series of higher highs and higher lows and BTC remains vulnerable to further sell-offs. All three moving averages, however, remain positive, while BTC is out of overbought territory and at its lowest CCI reading for nearly one month.

Bitcoin (BTC/USD) Daily Price Chart (June – January 11, 2021)

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Nick Cawley
Improve your trading with IG Client Sentiment Data
Get My Guide

Retail trader data show 80.70% of traders are net-long with the ratio of traders long to short at 4.18 to 1. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Bitcoin-bearish contrarian trading bias.

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) – 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