BTC shorts are unscrupulous and take advantage of Grayscale's holiday

Yesterday, the cryptocurrency market experienced Black Thursday, with a collective plunge. Bitcoin’s intraday decline once reached 11%, the first 11% drop since September 3. The decline then narrowed in late trading, and ultimately closed down 8.4% yesterday, giving up nearly half of this month’s gains. For some investors, it was like “returning to the days before liberation” and they were hit hard.

Looking back at other altcoins, their declines were similar to that of Bitcoin, and some individual currencies even closed higher. That is to say, the decline in the cryptocurrency market yesterday was triggered by Bitcoin. After the sharp rise in November, Bitcoin's market share has further expanded. Currently, Bitcoin accounts for 62.6% of the entire cryptocurrency market (data after yesterday's plunge), so any movement of Bitcoin will directly affect the entire cryptocurrency market. It can be said that "Success and failure are both due to Xiao He."

We summarize the reasons for the plunge in the cryptocurrency market yesterday, which are mainly caused by three major factors. First, OKE resumed the withdrawal function. At 16:00 yesterday afternoon, OKE finally resumed withdrawals after two months, triggering a large number of customers to withdraw money. WhaleAlert data shows that at 23:31 Beijing time on January 15, 1,135 BTC were transferred from the OKEx exchange to the address starting with 1369h7. Calculated at the current price, it is worth about US$9.965 million.

Second, major institutions such as Grayscale Trust were closed. Yesterday was Thanksgiving and the U.S. market was closed, so Grayscale was "on holiday." Grayscale is the main buyer in the cryptocurrency circle this year. Its lack of participation has led to a sharp drop in market buying demand, a lack of momentum for bulls, and a lack of support for prices, especially for Bitcoin, because Grayscale is the largest buyer of Bitcoin, triggering a domino effect.

BTC

Due to the huge negative candle yesterday, the short-term rhythm was severely damaged. It is difficult to return to the high above $19,000 in the short term. Currently, we are paying attention to the important short-term support, the 20-day moving average of the daily chart at $17,150. If this support is not lost today, the price is expected to rebound and correct.

Although it is expected to rebound in the short term, it does not mean that there will be no more downside risks in the future. The daily MACD has turned into a dead cross, indicating that it has entered an adjustment period. The $18,200 level above constitutes pressure, which means that when the price rebounds to the $18,200 level, it will be counter-pressured, thus ushering in the possibility of a second wave of downward exploration. Pressure: 18,000, support: 17,200.

ETH

After testing around $480 twice yesterday, it was supported and then rebounded. It is expected to stop falling and rebound in the short term. Pay attention to the strength of the short-term rebound. The main pressure area above is currently between 540 and 555. Pressure level: 540, support level: 511.

UNI

After barely holding the $3 mark, the price gradually rebounded, with short-term pressure around $3.60. We will focus on whether it can break through this pressure today and usher in further rebound space. Pressure level: 3.80, support level: 3.20.

LTC

The price has dropped to the 80 USD mark twice. For the time being, this mark is still an effective support level. As long as this support is not broken, the short-term downward space is limited. On the contrary, if this support is lost, the price will usher in further adjustments. Pressure level: 90, support level: 80.

ZEC

The price has held the previous important breakthrough of $66, which means that the medium-term trend has not ended yet and the market outlook is expected to gradually recover. Today, it is mainly buying on dips and paying attention to the pressure level of $80 above. Pressure level: 80.00, support level: 70.00.

LINK

Yesterday, the price broke through the $11.50 level twice in a row, forming a short-term support level. It is expected that the price will rebound today to test the resistance level near $13.80. Resistance level: 13.80, support level: 12.00.