As such, due to the fact that these things generally work themselves out, the complete collapse of Evergrande, China's second largest property developer, is still viewed as unlikely, as the market presumes that the powers that be will step in and stop a pile of dominoes longer than the great wall of China, from falling over.
Apparently Evergrande has started paying their debts off in unsold properties, which I'm sure will be fine... That being said, $669M feels like 'back of the sofa' money these days, so we can look forward to a week of volatility and then we can get back to focusing on on-chain data and adoption of digital assets.
Tether was quick to Tweet that the company doesn't hold any debt, commercial paper, or securities issued by Evergrande - which is somewhat of a relief, but does pose the question, if things do go south, which commercial paper do they own?
Expect a few bumps as this one plays out.
Liquidations of circa $1.15B have been witnessed, as leveraged longs faced their second bath in a matter of weeks. We will keep an eye on inflows to exchanges over the next 24 hours as we look to see if this risk-off theme sweeping traditional markets forces Bitcoin holders to consider their exposure levels.
May we live in interesting times, indeed.
The market is pulling back towards supports after a lackluster weekend of trading. We saw a bullish engulfing followed by a bearish engulfing candle. Tech levels on the daily chart are the same as the 30 min chart: Neutral until Bitcoin gets direction.
We saw a push below $47,000 on the intraday as more negative press around China’s Evergrande contagion sparked economic fears, while equity markets rolled over. Supports are seen at $44,150, $43,750, and $42,600. Resistance levels are at $47,000, $48,175, and $49,400.
On the weekly, we're seeing sideways action with a neutral RSI and positive momentum on MACD. The range remains intact at $42,500-$52,500.
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No surprise here, right. We’ve been talking and expecting new all-time highs for the past few days.
You can probably feel it, see it, hear it. Crypto markets are higher. We haven’t reached new all-time highs but, boy, are we close!