Analysts point to overleveraged traders after Bitcoin flash crashes to $43K

Traders were caught flat-footed on Sept. 7 after a sharp collapse in the price of Bitcoin saw the digital asset fall below $43,000 and this led to widespread liquidations in derivative markets as more than $3.54 billion was liquidated.  Amount of Liquidations in the past 24 hours by exchanges in total $3.54 was liquidated! In the past 24 hours, 330,243 traders were liquidated. The largest single liquidation order happened on @HuobiGlobal #BTC $BTC value $43.7M Data source: @bybt_com pic.twitter.com/hNgctWgCgP — CryptoDiffer (@CryptoDiffer) September 7, 2021 Bullish sentiment had been on the…

This quant-style indicator alerted traders to 3 out of 4 triple-digit rallies this week

Cointelegraph’s Markets Pro data intelligence service, which offers institutional-grade research tools for crypto traders, has shared the latest weekly VORTECS™ Report with its community of subscribers. The full report, available only to subscribers, presents the past week’s biggest-gaining tokens as identified by the platform’s artificial intelligence tools and offers interpretations of the data that it provides to traders. Here are some of the highlights of the latest issue: Three out of four altcoins with triple-digit weekly gains flash high VORTECS™ Scores before their prices peak. Markets Pro subscribers take profit…

Traders know not to ‘go long’ when this classic trading pattern shows up

Buying an asset in a downtrend can be a risky maneuver because most investors struggle to spot reversals and as the trend deepens traders take on deep losses. In instances like these, being able to spot descending channel patterns can help traders avoid buying in a bearish trend. A “descending channel,” also known as a “bearish price channel” is formed by drawing two downward trendlines, parallel to each other, which confine the price action of the asset. Descending channel basics In a downtrend, the price action forms a series of…

Time to rotate! Data suggests traders are shifting from NFTs to DeFi

An important part of preserving investing profits is knowing when an asset or sector is showing signs of exhaustion and when a sector rotation is underway.  This is especially important in the rapidly moving cryptocurrency markets, which can change direction in a heartbeat and turn crypto millionaires into depressed bag holders. Most investors know that the nonfungible token (NFT) sector has been on fire since July, and as CryptoPunks, Mutant Ape Yacht Club and pet EtherRock NFTs fetched six- and seven-figure sums, while top NFT marketplace OpenSea surpassed $4 billion…

Traders identify $51K as the key level for Bitcoin to overcome in the short term

The crypto market is back in high spirits on Sept. 2 after Bitcoin price briefly tapped the $50,000 level in the early morning trading session. The move above the key resistance level came as industry insiders hinted that major companies and institutional investors hinted that recent Bitcoin purchases would soon be disclosed in public documents. Additional bullish news came after Vast Bank announced that it had become the first U.S. bank to allow customers to buy, sell and hold Bitcoin (BTC) directly in their checking accounts. BTC/USDT 1-day chart. Source:…

Traders use this classic trading pattern to determine when to ‘buy the dip’

Traders use various technical analysis tools to identify emerging trends and profitably trade that direction. One popular trend-defining pattern that traders often rely on is called the price channel.  An ‘ascending channel’ or a “bullish price channel” is formed by drawing parallel lines between the perceived support and resistance levels that an asset trades between on candlestick charts. Ascending channel basics An ascending channel is formed when the price action can be contained within two upward sloping parallel lines. First, the main trendline is drawn by joining the two reaction…

Here’s how Bitcoin options traders might prepare for a BTC ETF approval

Very few events can shake the cryptocurrency markets in a sustainable manner that really sends Bitcoin and altcoin prices into a sharp directional move. One example is when Xi Jinping, China’s President, called for the development of blockchain technology throughout the country in October 2019.  The unexpected news caused a 42% pump in Bitcoin (BTC), but the movement completely faded away as investors realized China was not altering its negative stance on cryptocurrencies. As a result, only a handful of tokens focused on China’s FinTech industry, blockchain tracing, and industry…

3 ways traders use Bitcoin futures to generate profit

Whenever there’s data out on futures contracts liquidation, many novice investors and analysts instinctively conclude that it’s degenerate gamblers using high leverage or other risky instruments. There’s no doubt that some derivatives exchanges are known for incentivizing retail trading to use excessive leverage, but that does not account for the entire derivatives market. Recently, concerned investors like Nithin Kamath, the founder and CEO at Zerodha, questioned how derivatives exchanges could handle extreme volatility while offering 100x leverage. When a platform offers leverage or funds the customer to buy for more…

Bitcoin traders brace for Fed, options expiry as BTC price clings to $47K

Bitcoin (BTC) hovered near $47,000 on Aug. 27 as traders took no chances on the day of the Federal Reserve’s Jackson Hole summit. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView End-of-month cold feet for Bitcoin traders Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fluctuating in a range centered on $47,000 during Friday. The past 24 hours saw little action up or down for Bitcoin as market participants awaited cues from both the Fed and the end-of-month options expiry event, this time worth some $2 billion. “Not a very strong…

Chainlink (LINK) looks for momentum while pro traders target $40

Chainlink (LINK) is the leading oracle provider, and the project has onboarded over 281 crypto projects in 2021. Some of these include heavyweights like Huobi’s ECO Chain, the Hedera Governing Council, and Alchemix.  Launched in Oct. 2020, Chainlink’s verifiable randomness function, or VRF, has also gained notoriety among decentralized applications (dApps). VRF provides an automated source of randomness to ensure prizes and rewards are issued in a verifiably fair fashion. For example, on Aug. 13, Arbitrum — a layer-two Ethereum scaling solution — launched a beta mainnet service integrated with…