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Huobi decides to scale back in China. Is all the FUD finally over? Time to see the charts

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WhatTheFUD
@karamyog
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2 min read

The news of Huobi scaling down in China after the Chinese govt. decided to crack down on crypto dealings is real. However, the panic it creates isn't necessarily responsible for the price action yesterday. China has had multiple crypto crackdowns in the past. Huobi would have scaled-down multiple times. BTC is like the honey badger that just don't care.

BTC

BTC fell again yesterday and tried to test the recent lows. However, as the charts show, a lower low was made on the daily chart. It bounced right back from slightly above the support line at 30k. This definitely looks like the bottom. GBTC premiums have all vanished and the ETF is trading at a discount to NAV, further signalling oversold conditions. Funding rates on most exchanges have also dropped to below 0.

BTC dominance

BTC dominance hit the 50 DMA target and fell from there. With a possible bottom in, I may move from BTC to some preferred alts. ETH being the first preference. ADA still looks expensive to me. The other coins I prefer were mentioned in my post from 2 days ago.

ETH

ETH did fall but failed to test 200DMA and RSI is still slightly above levels that indicate ETH is in oversold territory. I think another small downside in BTC price should test both these levels for ETH and 200 DMA should act as support before a final move up.

ETHBTC

Quite a similar story on the ETHBTC chart. ETH bounced off from a level slightly above 50 DMA on the daily chart. RSI too is in no man's land and therefore, compared to BTC, ETH may be slow to move initially before it continues with its outperformance over BTC.

In other FUD-related news, Elon Musk, who many blame for this crash has tweeted positively about crypto. Those who have not seen his tweet, well he replied to someone's tweet saying that he prefers crypto in a fight between fiat and crypto. Anyway, Tesla is now probably sitting on a loss on its BTC investment and will take a hit this quarter (if prices stay where they are). Not that Elon cares too much about shareholders, but hopefully he can find other ways to massage his ego rather than move a $2 trillion market with one tweet.

Posted Using LeoFinance Beta