Bitcoin is approaching a “dead cross”, which may result in a significant drop in the near future

07.09.2023

Dear traders,

The market is currently experiencing a slowdown in momentum and a boring consolidation phase, likely preparing for a major swing.

Jake
TOP Trader

BTC is currently testing the mid $25,000 support zone and could potentially continue to drop further. It still exhibits low trading volume and appears to be gearing up for its next major move.

ETH has retraced to a crucial support level at $1,630, and there is a possibility it may fill the wick down to $1,500. It remains in a precarious position, potentially signaling a larger correction.

XRP has fallen back to the $0.5 support level and needs to hold this level; otherwise, a more significant decline could be imminent.

LINK is currently undergoing a substantial pullback towards the $6 support level and is losing strength for a potential upward move. Despite diminishing momentum, any price below $7 presents an attractive buying opportunity.

SOL has broken below $20 and is showing low trading volume. There is a substantial likelihood of a larger pullback in the coming days.

EOS has dropped below the $0.6 support level and is losing momentum for a potential upward push. It remains an appealing option for long-term investors.

LTC has dipped below the $65 support level and is losing momentum, increasing the likelihood of a more significant breakdown.

DXY has broken bullishly above the 105 resistance and needs to sustain this level on a daily basis to confirm a significant bullish breakout.

Crypto/stock daily news:

CRYPTO’S NEW TREND: USING BITCOIN AS MARGIN COLLATERAL

Check it out. There’s been a growing trend in crypto…
Investors are using Bitcoin as margin collateral in futures trading.
• Since July, Bitcoin futures contracts using BTC as collateral have increased from 20% → 33%.
• This means investors are using their BTC to back other crypto investments, as well as leverage even more Bitcoin. (It’s the Meal of Champions Degens)

Some analysts are pointing out that this is bad for 2 reasons…
1) It shows the lack of liquidity in crypto right now
If investors are resorting to putting up their BTC as collateral, it shows there’s a shortage of cash in the market.
Crypto is a lot like the Burning Man festival – stuck with low liquidity.
2) Using BTC as collateral for a derivative is a double-edged sword
Sure, being able to use crypto as collateral when you run out of cash sounds cool, but it brings more volatility and liquidation to the market.
That’s because when your collateral is also an asset decreasing in price, your lender starts to get worried. And when your lender gets too worried, they liquidate and take your assets.
Blockware Intelligence refers to this as the ole’ “double whammy”.
And once liquidations start, it’s hard to tell when it’ll stop.
As prices go down → positions get liquidated → bringing prices down lower → leading to more liquidations.

It’s a vicious cycle and we’ve seen how liquidations can make prices crash, quickly.
So watch out – this is definitely a trend worth keeping an eye on.

FAST NEWS:

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Holders will get access to Casio’s secret Discord channel where users can enter “co-creation” competitions to develop new designs for the NFTs.
Genesis will shut down its crypto trading desk for the U.S. market. The over-the-counter trading platform will close on Sept. 18 – all remaining accounts will be closed on Sept. 30.
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El Salvador will introduce Bitcoin into its schools’ curriculums by 2024. The Bitcoin diploma program will be taught to 150 public school teachers from 75 schools to provide them with a “base knowledge” of Bitcoin.