Bitcoin volatility post-CPI causes max pain

After a sharp drop yesterday post-CPI numbers, Bitcoin rallied up to \(19,950 for a 10% gain from the local bottom of \)18,200. This quick move left market participants surprised, and somewhat sidelined — causing max pain for both longs and shorts.

Today, however, DXY has also bounced and both equities and crypto appear to be correcting, with Bitcoin back around $19,400 at the time of writing.

Top altcoin gainers and losers

Gainers

• Ethereum Name Service ENS (+16.50%)
• Lido DAO Token LDO (+10.85%):
• Cosmos ATOM (+9.36%)

Losers

• Chain XCN (-3.64%):
• Terra Classic USD USTC (-3.01%):
• Helium HNT (-2.29%)

BTC Technical Analysis

Bitcoin price is facing a clear rejection at around $20,000 on the daily time frame and is struggling to form a bullish structure. The futures open interest is also lower today compared to this week in general, as the move upward appears to have liquidated and/or trapped late shorts.

All of these factors indicate that a breakdown in terms of price may be violent and unlikely to reverse in a short period of time. Bulls will want to hold \(19,350 - \)19,250 in order to prevent any capitulation; otherwise, we could see a long squeeze taking the price down to $18,500.

ETH Technical Analysis

ETH price action has been weak over the last few days, and we saw it collapsing to as low as \(1,180 yesterday. While the second-largest cryptocurrency is trading back above \)1,300 now, it needs to hold this range in order to continue upward.

A breakdown from here may see ETH trading as low as \(1,285, with the major support still sitting at the \)1,050 level, as highlighted in previous updates.

Coin360 Daily Digest

Here’s a rundown of the major crypto market news from today.

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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.