Bitcoin Tests $6,000 Support Level 6 Times in Past 3 Months, Crypto Markets Appear to Have Found Bottom
Cryptocurrency Market Appears to be Testing Major Support Levels
Leveraging technicals when it comes to cryptocurrency trading can be very had, more so when the market is driven by fundamental events that are known to change the entire landscape quickly. But these technical are good at times, as they can help guide swing trades when looking at relative resistance and support points on major cryptocurrency charts.
Let’s take a look at the AltDex 100 Index (ALT100), a benchmark index focusing on largecap tokens and cryptocurrencies. Within the benchmark, BTC has a weight of about 58% whereas ETH and XRP have a weight of 10.8% and 6% respectively.
Focusing at the ALT100, one can clearly see a significant support line that has remained for several days through bearish market movements. In August, the 70.5 level held back before a major turnaround in the prices of altcoins, and it appears to have held yet again over the last day.
Downward Pressure Died After SEC Postponed Its Decision On Cboe VanEck/SolidX ETF
In August, the market reacted harshly after the U.S. Securities Exchange Commission announced that it would postpone an earlier decision on whether it would approve the listing of Cboe VanEck/SolidX ETF backed by Bitcoin until September 30. But the pressure on the cryptocurrency market didn’t last for long as it died out with the ALT100 testing at 70.5 for a number of days consecutively, before surging again over 25%.
More Pressure From Unconfirmed Goldman Sachs Report
After that major collapse, more pressure was put on the cryptocurrencies after reports emerged that Goldman Sachs was ditching its plans to pursue a bitcoin trading desk. The 75.5 line held as first line of support, breaking quickly to the 70.5 support level. After the news were debunked by the companies CEO, who claimed that the reports were only but ‘fake news’, the ALT100 bounced off the initial support level by roughly 1.4% to hit 72.03.