Digital Currency Revolution Series: BTC Tumbles To $11k, Healthy Corrections For Smooth Liquidity And Mega Bullish Journey?

The main property of any reliable and attractive investment/asset class is liquidity factor and the prime functionality of the marketplace is to ensure an equal number of buyers and sellers and facilitate trades. BTCUSD has established a new 2019 highs at $13.8 levels and tumbles from there to the current $11.5 areas. One cannot afford to expect non-stop buying or selling activities forever, it has shown almost 350% jump in last 6 month or so. Bitcoin is global currency and the price actions in the lifecycle of a currency system which is global likely to sharp spikes and steep slumps. 

Hence, the prevailing price behaviour of Bitcoin is quite justifiable, for a robust bull-run to develop and for the crazy anticipations of bullish targets like $25k, $50k or $100,000 and so on, we wouldn’t be surprised even if it dips further for healthy corrections, we could see the next strong support at around $9,600 level.

Bitcoin trading activity is breaking all-time records in terms of volume and open interest in Bitcoin futures. 

The latest trading activity has caused Bitcoin’s value to reach an 18-month high, propelling an ample amount of Bitmex short-sellers to hurriedly liquidate their positions.

They report a record volume of USD 1.6 billion and open interest of 5,827 Bitcoin contracts at CME and USD 373 million worth in the recent past.

Another significant aspect is liquidity, to better understand Bitcoin’s prime and potential role as a hedge against liquidity risk, we’ll look at Bitcoin market action in the wake of some macroeconomic developments, those who know the essence of the very concept of cryptocurrency itself during the last debt crisis in 2008, will only understand this. We will discuss this in full-fledge in our upcoming posts.

In that perspective, it outlines live apprehensions of the crypto avenue and the potential threat areas, like the reliability of custodians and most significantly liquidity concerns. 

Notably, in the recent past, the ESMA has also alarmed this emerging asset class, with liquidity concerns in conjunction with other issues, like scams, fraud, missing surveillance measures, speculations, and cyber-attacks, etc are the genuine hindering reasons that resemble with the U.S. Securities and Exchange Commission (SEC) clarifications on the BTC ETF deferrals and denials.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -37 levels (which is mildly bearish), and hourly USD spot index has bearish index is creeping at -76 (bearish) while articulating (at 07:35 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex