Bitcoin crash sparks widespread cryptocurrency market downturn
Bitcoin came under heavy technical selling pressure this week as the number one cryptocurrency suffered its largest one-day decline since January 2018. The BTCUSD pair experienced high selling volumes and one-way selling, after breaking below the $9,300 support level. Market participants sold the BTCUSD pair over bearish fundamental news coming from Bakkt’s newly opened Bitcoin futures venture. Reports that Bitcoin futures trading volumes had been low during launch the of the product sparked the heavy sell-off. Bitcoin had been trading in an incredibly narrow range during the summer months, as the BTCUSD remained trapped in a large ascending triangle pattern.
- The BTCUSD pair is only bullish while trading above the $9,300 level, key resistance is found at the $10,000 and $10,700 levels.
- The BTCUSD pair is only bearish while trading below the $9,300 level, key support is located at the $7,600 and $6,500 levels.
RBNZ maintain rates
The Reserve Bank of New Zealand kept interest rates on hold this week, following a series of dovish rates cuts from the New Zealand central bank. The RBNZ maintained the benchmark interest rate at one percent, following last month extremely bearish fifty basis point interest rate cut. The New Zealand dollar staged a minor after the RBNZ policy statement, as it sounded less-bearish than market participant has been expecting. Economists are predicting a potential rate coming in November if the New Zealand inflation report comes in weaker-than-expected next month.
- The NZDUSD pair is only bearish while trading below the 0.6350 level, key support is found at the 0.6275 and 0.6200 levels.
- If the NZDUSD pair trades above the 0.6350 level, buyers may test towards the 0.6410 and 0.6480 resistance levels.
The broader cryptocurrency market also came under heavy selling pressure this week, with popular cryptocurrencies such as Litecoin and Ethereum suffering heavy double-digit losses. The cryptocurrency market started the new trading week in a bearish mood, as the top ten cryptocurrencies eroded early month gains. The heavy selling in Bitcoin sparked an even deeper decline in the broader market, with the ETHUSD and LTCUSD pairs crashing to fresh multi-month trading low. The entire digital currency also turned bearish as the total market capitalization of the cryptocurrency market crashed below its 200-day moving average.
- The ETHUSD pair is only bearish while trading below the $180.00 level, key support is found at the $150.00 and $125.00 levels.
- If the ETHUSD pair trades above the $180.00 level, buyers may test towards the $200.00 and $225.00 resistance levels.
The British pound eroded a large portion of its recent gains against the US dollar this week as Brexit headwinds caused sterling to fall towards the 1.2300 level. UK political infighting and bearish statements from EU officials caused the GBPUSD pair to reverse sharply from just below the 1.2500 level. Sterling also remained pressured due to rumors of a potential upcoming UK General Election, as traders feared either a hard-Brexit scenario or a potential Labour-Liberal Democrat Party coalition.
- The GBPUSD pair is only bullish while trading above the 1.2510 level, key resistance is found at the 1.2580 and 1.2660 levels.
- The GBPUSD pair is only bearish while trading below the 1.2510 level, key support is located at the 1.2300 and 1.2250 levels.