On the last trading day of the week, the hard selling waves in the global markets also affected the crypto money markets.
We see that the VIX index, which measures fear and uncertainty in global markets, has increased by 30%.
In addition, there are hard sales in all instruments except Gold and Silver. While the losses in the US futures reached 2%, the sales in the European and Asian stock markets reached 3%.
It is considered that the new coronavirus variant in Africa is effective in these hard sales in global markets. While it was stated that the new variant, which was seen in more than 50 people in South Africa, was twice as effective and contagious as the Delta variant, the markets saw hard sales due to the possibility of a new closure.
Bitcoin and altcoins also seem to have been affected by these hard sells. Because of the covid-induced collapse in the global markets in March 2020, Bitcoin and altcoins were affected and the losses reached 50%.
Despite the 10% drop in Bitcoin, we see that altcoins are standing firm. Because under normal conditions, we would see that the losses in the bottom reached 25-30% while Bitcoin dropped 10%. However, the losses in altcoins were limited to the 10-15% band. This turns out to be positive data.
Technically speaking, we are still inside the falling channel from $69,000. Retracements up to $51800-$50,000 can be considered reasonable.
If we fail to see a 4-hour close above $55800, we may descend to lower supports. At this point, the opening in the US stock markets should be followed. If that place starts the day with hard selling, we may see some more pullback in Bitcoin.
Recalling March 2020, experts consider that covid-induced pullbacks can be a good buying opportunity.
*Not Investment Advice.