Yesterday, following the publication of statistics on the US labor market, the price of Bitcoin fell to $19,335. Analysts are now watching for support that could challenge sellers if the downtrend continues.
To Report Cointelegraph The sharp fall in cryptocurrencies and the stock market after the release of last month’s US labor market data came as the dollar index surged. This index compares the value of the US dollar with a basket of major world currencies.
Michael van de Poppe (Michaël van de Poppe), the founder and CEO of trading platform Eight (Eight), described the US unemployment rate in September as lower than expected and said that the economic data released last week were contradictory.
Van Depop says:
The decrease in the unemployment rate from 3.7% in August to 3.5% in September is a positive change. [برای اقتصاد] and in contrast to the statistics related to job opportunities and “PMI” (which measures the changes in the economic activities of the manufacturing sector) that were published at the beginning of the week, they had a negative performance. Now, investors are waiting for the release of consumer price (CPI) and producer price (PPI) statistics in the United States.
The experts of the Material Indicators analytical platform (Material Indicators) on the Twitter page of this series have emphasized the importance of the 50-day simple moving average (MA 50 – yellow line in the picture) of Bitcoin as a resistance.
The previous day, with the release of US unemployment rate data for September, the price fell from the 50-day simple moving average and lost the support of the 21-day simple moving average. It should be noted that Bitcoin managed to recover the support of its 21-day simple moving average, but the 50-day simple moving average remained intact.
Material Indicators analysts wrote in their tweet:
Bitcoin has made 4 consecutive retracements of the 50-day SMA this week, and after the release of US unemployment data, the price fell below $20,000, the all-time high of 2017, and the 21-day SMA.
As volatility suddenly returned to the market, those Bitcoin traders who had opened long positions lost a total of $23 million in liquidation yesterday.
The total liquidated amounts of long positions in the digital currency market on October 7 (October 15) was equal to 63 million dollars, compared to 19.5 million dollars for the share of short traders (selling).
$19,000 remains one of Bitcoin’s most important supports, and a meaningful breach could lead to a deeper price drop. According to the conclusion of the experts of the Whalemap platform, the investigation of the buying and selling points of whales identifies key levels, one of which is the realized price of wallets containing 10 to 100 bitcoins. It should be noted that this index is now at $12,500 and the price has not fallen below it so far and throughout history. Therefore, if a new downtrend is formed, $12,500 could act as the main support ahead of the price.