Legacy and crypto crypto markets saw a strong correction today as traders fear that the second round of economic stimulus might be delayed as the White House, Senate and Congress could become entangled in a fight to fill the vacancy created by the passing of Supreme Court Justice Ruth Bader Ginsburg.
In addition to this, financial stocks are leading the bloodbath as reports emerged that several banks could have been involved in facilitating the movement of over $2 trillion over a two-decade period. These suspicious transactions have been flagged as possible money laundering or criminal activity by the banks internal compliance officers.
While Bitcoin price is correcting today, this exposure of potentially illegal behavior by banks will only strengthen the narrative for why investors should buy Bitcoin (BTC).
Daily cryptocurrency market performance. Source: Coin360
The increasing number of coronavirus cases across the world is also adding to the negative sentiment seen in the market today. This has led to panic selling by traders who are dumping equities, gold, crude oil and cryptocurrencies and instead are buying the U.S. dollar.
However, after the initial round of selling, most asset classes are likely to chalk their own course depending on their long-term fundamentals and cryptocurrencies may be among the first to rebound.
Lets study the charts of the top 10 cryptocurrencies to spot the critical support levels that could attract buyers.
Bitcoin turned down from the 50-day simple moving average ($11,225) on Sep. 19 and broke below the 20-day exponential moving average ($10,781) and the $10,625 support today. This fall suggests that the bears used the recent relief rally to $11,000 to initiate short positions.
- Bitcoin Cash
- Binance Coin
Disclaimer: The views expressed in the articles are those of the contributors or partners who contract with the editors and publishers and are not the view of the editor and publishers