Bitcoin (BTC) has finally declined below $10,000 in an interesting turn of events. It is particularly interesting that this has happened just before the scheduled Bakkt launch on Monday Sep 23, 2019. Certainly, it has left a lot of traders wondering as to why this has happened but those that have been following the hype around Bakkt would know that this has happened before as well. It is not just about Bakkt though. Every event that creates hype leads to the price of the concerned asset declining just before the event. We have seen this happen in the case of Ripple (XRP) during its Swell events and we have seen this just recently in the case of Litecoin (LTC) just before its halving.
The price of Bitcoin (BTC) has now declined below the 61.8% fib extension level. We have been expecting this decline for days despite the recent bullishness in the market. The reason we expected such a decline was because the price was closely following a fractal from August, 2019 and it had to decline below the 61.8% fib level to complete that move. BTC/USD has now completed that move but as long as it remains below this level, there is no hope of a bullish reversal. The longer the price remains below this level, the more it risks further decline towards the bottom of the descending triangle. This is the second time the price has invalidated a symmetrical triangle which means that it would be very reasonable to expect that the larger symmetrical triangle is going to meet the same fate and Bitcoin (BTC) will decline below $9,000 soon.
Ethereum (ETH) rallied hard these past few days and it pumped life into the altcoin market with it making aggressive moves. However, as we have discussed before, these moves are not sustainable and as we can see on the 1H chart for ETH/USD, the price has declined well below a large rising wedge and is now trading below the 38.2% fib retracement level. It is currently sandwiched between the 21 EMA and the 50 EMA on the 1H chart but we are very likely to see a sharp decline below the 50 EMA in the near future which will pave the way for the price declining towards the bottom of the descending channel. If we take a look at the XRP/USD chart, we can spot a similar descending channel because altcoins have been making similar moves these past few days. It is also trading below the 38.2% fib retracement level just like ETH/USD.
The Fear and Greed Index has finally picked a direction and it has declined. We seem to have a direction for the market now. The EUR/USD chart shows that the EURO has been attempting to break out against the US Dollar (USD) but it has failed to do so. The Euro rallied higher on the possibility of a large rate cut but the Fed disappointed the market and President Donald Trump with a small rate cut of 0.25%. This explains why the Euro has failed to break past the US Dollar and why we might see EUR/USD decline to new lows this year taking Bitcoin (BTC) down with it. As for the hype around Bakkt, let us look at something interesting. Bakkt was previously scheduled for launch on December 12, 2018. Exactly one month before the scheduled launch, when everyone was expecting $6,000 to hold because of Bakkt, the market nosedived and BTC/USD broke the $6,000 support and the rest is history.