Thursday 26 November 2020 11:33 am | Updated: Thursday 26 November 2020 11:34 am

Down, down, down

By: Crypto AM Daily in association with BEQUANT

Choppy Times

The price action turned choppy in the closing hours of trade on Wednesday, in part due to the upcoming Thanksgiving holiday in the US which will likely dry some of the liquidity from the market, but also due to expiries this coming Friday.

Still, the resilience showed up until then has been truly impressive and peak FOMO has been such that any dips were almost immediately absorbed. The tail risk is crowded market and it usually doesn’t take much to create a cascade effect.

In the Markets

Back to Average

Overnight, the price action south accelerated further and the severity of the aforementioned cascade saw Bitcoin crash into the low $17,000 zone.

At the same time, Ethereum fell from $600 all the way down to $504. As alluded to in the recent commentary, the steep contango structure that prevailed up until now finally narrowed.

Only time will tell whether this is the beginning of a longer and more extensive correction but the overall market structure is very different to the last time Bitcoin traded near these levels. As such, the base scenario remains intact for now.

Crypto AM: Longer Reads