Bitcoin has fallen to $58 thousand

Financial concept with bitcoin currency on computer laptop and other currencies and credit cards on keyboard. Copy space.


On Tuesday, October 26, bitcoin trading ended with a decline. The BTC/USD pair declined by 4.36% to $59,817. In the American session, buyers tried to fight off the support of $ 61700, but failed. Closer to the close of the day, sellers broke through $61700, activating a cascade execution of stops on long positions under it.

When the price returned from $62773 to $61700, buyers had almost no chance to resume growth. Strong US data came out yesterday. The US consumer confidence index unexpectedly rose in October and sales of new homes in the US soared by 14% in September.

On the news, the main currencies fell against the dollar

The SP500 index also declined after updating the historical maximum. It so happened that the external background for risky assets has changed. Early in the morning, negative news arrived from China and the United States, which had a negative impact on risk appetite. The dollar has risen again against its competitors, including the cue ball.

Chinese authorities have informed the head of China Evergrande Group, Hui Ka Yan, to sell his property (more than $7 billion) to settle with creditors and mitigate the deepening debt crisis. The authorities have made it clear that they are not going to pull him out of debt. The Hand Sang index fell by 1.83% to 25577 points.

In the United States, the Federal Communications Commission (FCC) on Tuesday revoked the license of a division of China Telecom, one of the three leading providers of communications services in China. The FCC said China Telecom (America) has raised significant risks to national security and law enforcement. There is an opinion that the United States took such a step because of Taiwan.

The sellers have achieved their goal. On Wednesday, at the European session, the bitcoin exchange rate fell to $ 58 thousand. The technical picture becomes “bearish”. The activity of buyers has noticeably decreased. In 2017, when bitcoin futures were launched on the CME, the bitcoin exchange rate turned down. We have listed Coinbase on Nasdaq – the market has turned down. Approved Bitcoin ETF – the market turned down. It is clear that there are many factors that influence the market, but after an important event, to see a correction is about 80%.

The BTC/USD pair is trading at 59050. Sellers are already set to move to the level of $55,300 per bitcoin. Let me remind you that on October 29, Evergrande ends the grace period for paying interest. A troubled developer is to sellers like a red rag to a bull. In order for buyers to neutralize the “bearish” sentiment, they need to close the day above $61 thousand for bitcoin.

The dollar’s growth is being held back by falling US bond yields. The situation on the debt market is uncertain before the FOMC meeting. If American statistics disappoint investors today, it will be possible to recover to $61 thousand, or we should expect a cascading drop to $55 thousand for bitcoin.