Jul 10 Trading Analysis: When bitcoin sneezes, the crypto world catches a cold
When bitcoin sneezes, the crypto world catches a cold. BTC's down 2% in the past 24 hours dragging the entire sector into the red, with recent ALT tokens starting to retrace their stellar gains. Last night, we had some liquidations going through ~$20mil on BitMex from the sell-off in US stocks, driven primarily by large cap stocks. Interestingly, there's some divergences going on between stock indices performance; while the Nasdaq gained 0.5%, Dow fell 1.4% and small cap Russell 2000 dropped 2%. Robinhooders giving up?
With escalating covid19 cases in some US states (esp Florida, Texas, California and etc - it's very hard to ignore that when the cases keep rising), Oil now back to below $40, lack of any macro news tonight and some technical exhaustion signs on equity indices, I think US stocks will trade weak tonight; and I think there is a likelihood that S&P will likely close near the BIG 3k level. BTC has seen a 31% MoM drop in trading volume last month, and the trend's been similar so far this month, and that has basically stuffed volatility up. I think with this potential crumble in equities tonight, BTC will see a BIG move tonight. A big $500-1k move. My plan is to basically to sit short and load up on 8 to 8.5k puts for the next few days. Gdluck and have a great weekend.
BTC is respecting the downtrend channel for now... Dont fight the trend, the trend is always your friend...