Crypto update

It is September 7th, 2018!

BTC dominance is currently at 54.9% (+1.7%). The total market cap is currently at $201.7 billion (- $37.2 billion). The market volume of last 24h was $20.6 billion (+ $7.4 billion).

Yesterday was on of the craziest days in last few days if not the craziest one! These are the questions that are very important right now:

1. What caused this insane drop of $1200 in less than 24h?
2. Where are we going to establish the support?

We are going to give you our opinion on these 2 main questions!

Goldman Sachs Drops Plans to Open Crypto Trading Desk

https://cointelegraph.com/news/business-insider-goldman-sachs-drops-plans-to-open-crypto-trading-desk

This was the main reason why we saw yesterday's dump!

If you read the article carefully you will see that they didnt say that they won't open crypto trading desk but that it is not their priority right now! Goldman is one of the biggest names in finance. If they changed their mind about crypto, others may follow. That's why it was a big news.

This was the second reason: https://ethereumworldnews.com/silkroad-wallet-moves-100m-usd-bitcoin-btc-exchanges/

Technical analysis

Daily chart : https://www.tradingview.com/x/HO0djVfX/

In one candle we went from top bollinger band to test low bollinger band! After this drop it will be very hard to see 7k in upcoming days/weeks.

We do not expect the drop to continue from this point to 6k and lower! We think that some kind of consolidation has to happen! But it will be just short-term support before new leg down! This time it is very hard to expect to see rejection from 5800-6000 support area! We came very fast to this area and most likely this time it will be broken!

We are in crypto world and every kind of manipulation is possible! We can only say that number of shorts are still growing so big guys are not closing their bags that were opened 5-6 days ago. It is very strong sign that they are willing to dump it even more!

Bitfinex Long/Short ratio is 41/59 while on Bitmex Long/Short ratio is 49/51. You can check at this link: http://prntscr.com/kr94b7

It means that short squeeze is not going to happen in near future because on Bitmex it is almost the same number of short/long positions!

So to conclude, the drop looks very strong and it is just matter of time when we are going to see test of 6000!

We will try to find best entry point for new short position because longing now could burn your account easily!