ZB Market Daily: BTC, DOT & LINK technical daily analysis
Over $1.55 billion worth in Bitcoin options are set to expire on 23rd of April.
From several option contract expiration in trading financial instrument, it has been a norm that when the derivatives gets expired, the market do experience some sort of turbulence prior to the set day .
Risk appetite for investment went lower as the volume dropped due to uncertainty of unpredicted volatility during scheduled day.
Bitcoin dominance plummeted to 50% for the first time which was last seen on the 4th of August 2018 during the bear market.
The total crypto market capitalization plunged to a low of $1.809 trillion due to heavy bear pressure.
Yesterday, it was a weak bearish start to the day as the bulls defended the support $53282.67 built on 18th April.
The bears stood on their feet to defend $56793.62 resistance irrespective of buying pressure from retail traders triggered by fundamental impacts news of institutional acceptance of Bitcoin.
After creating a liquidity grab at $55242.14 and failure of the bulls to thrust BTC price above the descending triangular fallen wedge pattern, EMA crosses and 20 period SMA , BTC created an evening star which a was bearish signal that led to massive sell-off at the close of yesterday’s session.
BTC price tanked to the support $50886.02 built on 25th March.
At press time, the bearish divergence of the Bollinger means the bears have upper hand in the market. The RSI down sloped below the neutral zone as a sign of bearish trend as BTC price printed lower lows.
On the day ahead, if the volume decreases, the bears might be forced to break below $50886.02 and extend the declination to a lower low of 47k in the midterm.
After DOT price reached an all-time high of $48.3293 on 17th April, the pair printed a rejection wick to create a triple top at $45.8141. This bearish setup led to crash of DOT price to a low of $29.2484 on 18th April.
Yesterday session, DOT price consolidated to create a bearish flag to the downside.
The bulls wrestled with the bears at the EMA crosses and a horizontal resistance of $36.1906, due to lack of volume, DOT price got rejected the 3rd time at this price level.
This led to plunged of DOT price to an intraday low of $32.8044.
From market technical indicators, DOT price closed below the moving average channel (MAC). The bears also broke the 20-period SMA.
This is a sign of bearish pressure on the day ahead. But one key price level to confirm if the bears control DOT price over the weekend will be a breakout of the support at $32.8044.
If the bears succeed, then DOT price could further flip the lower low at $29.2771 to fill downward rejection Wick on 18th April.
After a two day consolidation with a range of $35.7886 and $39.1113, the bulls broke the consolidation to an intraday high of $40.5755. But due to resistance built on 16th April (a broken support now turn to resistance), LINK marine lost its steam to thrust price above this level.
LINK price fell back to the consolidation zone during the New York session.
At the close of the yesterday session, the bear broke the EMA crosses to the downside, LINK price fell to an intraday low of $33.9864.
The MACD is below the zero line and also the moving average crosses dip below the signal line. The histogram shrinks as the sign of bearish pressure due to broader market is in red territory.
At press time the bulls retest the yesterday support at $34.8112.
On the day ahead, If LINK marine fails to thrust LINK price above this key level, the bears will extend the declination and target a lower low at $30.5568 over the weekend.