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Technical Analysis of BTC/USD for June 10, 2020
Crypto Industry News:
After the latest CoinMarketCap update, which introduced a “trust factor” in the stock market ranking, users question perceived injustice against popular platforms. Twitter users have criticized CoinMarketCap for placing BitMEX, one of the most popular derivatives exchanges, in 175th place.
Such a low position seems unusual in the new CoinMarketCap rankings, in which Internet traffic is one of the main factors. This update appears after a few weeks in which exchanges were ranked only by network traffic – which has also been criticized. According to CoinMarketCap, BitMEX has an almost ideal network traffic result of 960, just 40 points less than the maximum Binance value of 1000. However, the BitMEX liquidity index is zero. Indeed, a sudden change can be seen, starting from position 175, after which all exchanges have zero liquidity rating. Decentralized exchanges such as Bancor and Uniswap can also be found later in the ranking.
CoinMarketCap representative explained that the current ranking includes only spot exchanges, while promising that derivatives platforms will soon be classified as well. However, several stock exchanges in the top 50, such as CoinDCX and Huobi Russia, also have liquidity ratios of zero, making it difficult to interpret the new ranking mechanism.
A notable exception in the ranking of derivatives platforms is FTX, which took 74 place. The price aggregator has often been criticized for creating rankings that favor its new owner, Binance. Although Binance is an FTX investor, the discrepancy can be explained by the fact that the platform has several cash markets that can determine its position.
Technical Market Outlook:
The BTC/USD pair still has been seen trading between the levels of $9,381- $9,822 as the volatility is decreasing significantly. The market keeps bouncing from the ascending trend line support (marked in blue on chart) every time the price goes lower. It means, the bulls are still trying to push the price higher despite the overbought market conditions. For them any violation of the local low made after the sell-off ( the low is located at the level of $9,158) would indicate the start of the corrective cycle to the downside with a target seen at the level of $8,565.
Weekly Pivot Points:
WR3 – $11,389
WR2 – $10,828
WR1 – $10,195
Weekly Pivot – $9,652
WS1 – $9,043
WS2 – $8,494
WS3 – $7.815
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
The material has been provided by InstaForex Company – www.instaforex.com
