Bitcoin Tests EMA Ribbon Before Crash Anniversary

As the crypto sphere approaches the anniversary of last year’s precipitous price fall, Bitcoin is putting the EMA Ribbon to the test. Crypto Commons has traders on edge given the market’s nervous disposition and the liquidity evident as high as $100,000.

Anniversary of the Crypto Crash Looms

The 2020 crash, which will be marked on October 10, was a defining event for the industry. The downturn in Bitcoin began in early October before a 25% nosedive appeared, with the biggest drop coming in November. Altcoins were not spared, with some nearly vanishing; Crypto Commons likens it to what happened with oil back in May 2020.

Current Market Signals: EMA Ribbon and Liquidity

Now the question is how Bitcoin fares against the EMA Ribbon, a support and resistance area of some importance to the trading community. Charts show a green money flow which, in the view of Crypto Commons, could signal a recovery. Yet the annual liquidation map tells a more cautious story. Short liquidity is thick up to $100,000 and there is still plenty at the $50,000 level, so one can expect some volatility should those pools come under pressure.

Day traders and scalpers would do well to pay attention to the transition zones from local pivots when looking to enter or exit. And while a few may be counting on a reversal out of nowhere, the consensus at Crypto Commons is that a $100,000 breakout is not likely for the time being.

Market Cautions and Opportunities

Caution is advised by Crypto Commons; the way the market is structured, a shakeout in the vicinity of the $50,000 zone is a distinct possibility. Active traders might also find interest in the deposit bonuses offered by XT and other exchanges in their bid to sign up new users and make the most of any erratic action.

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This article reflects the channel author’s opinion and is not investment advice.