Majority of cryptocurrencies in top 50 dropped in value on Wednesday, despite positive news that the US brokerage firm, TD Ameritrade is joining a group of financial corporations to back a new crypto-related exchange, ErisX. Bitcoin may even be signaling a bearish reversal.
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About ErisX and TD Ameritrade Partnership
On Wednesday, ErisX announced its plans to “launch a derivatives exchange (DCM) and clearing organization (DCO) that will include fully regulated digital asset futures and spot contracts on one platform.” TD Ameritrade is among the 12 partners who invested in ErisX’s new venture. Among its partners are Cboe Global Markets (CBOE), and DRW Holdings. The partners hope to curb some of the roadblocks to broader market adoption and to “make digital currency products more accessible to retail clients.”
Market reaction
Regardless, the news didn’t create a bullish sentiment in the market. Some altcoins like Golem and NEM dropped by 6%. Ripple’s XRP, Bitcoin Cash, Stellar and Litecoine averaged a 4% drop by the end of the New York session. Meanwhile, Bitcoin’s drops were capped by 1.2%.
BTC/USD Technical Analysis
Taking a closer look at BTC/USD, the price appears to be capped by the lower band of the daily Ichimoku cloud, forming a Double Top bearish reversal chart pattern.
A break below the neckline and pivot level of $6,394 could open doors for yet another visit of the $6,000 psychological level. As you can see, the lower highs are getting very close to this key support level, which could indicate a strong storm coming up. But to which direction? Only time can tell.
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Now I’d like to hear from you. What do you think about the cryptocurrency market’s future? How bullish or bearish are you? Let me know in the comments, and subscribe to get more updates! As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don’t forget to complete your risk management due-diligence before developing your investment strategy.
Invest responsibly,
Kiana
