BTC/crypto-wide “sell off” - using this opportunity to show what round number resistance and supports look like. The more granular the time scale (near term) the more the impact, but nonetheless even on a multi year chart, major levels of support and resistance (round figures ie ¥6million, $60k, €60k etc, or ATH’s / 52wk lows etc) matters, across several BTC/fiat pairs (USD JPY EUR TRY KRW SGD MYR HKD AUD CHF ZAR GBP & others)
This current one is Japan’s. Started around Sunday noon JST / midnight Sat night US EST / Sun morning 5am Frankfurt/4am London (which in itself tells you which is the only part of the world in the middle of their day wide awake and trading)
BTCUSD (left) vs BTCJPY (right)
See any BTCUSD specific price level triggers? What happened for that gap down between $58k & $57k? Or the bottom reversal above $51k? You can round off some of the levels rather than being exactly down to the decimal (as resting buy limit orders arent placed at say $60,000.00, but rather just barely below at $59,988 etc), but not at every turn in price action - then you’re just turning the arbitrary into forced / false relevancy.
What about BTCJPY? Precise round level inflection points? Yep.
¥6.5mn break → ¥6.4mn held
¥6.4mn break → thru ¥6.3mn → ¥6.2mn held
¥6.2mn massive break → thru ¥6.1mn, ¥6mn, ¥5.9mn → ¥5.8mn held & reversed.
Also note the volume profile. im not talking about comparing the actual volume qty of BTCs traded because these are just using 2 charts from different exchanges (coinbase for BTCUSD vs Bitflyer for BTCJPY). I mean the actual volume profile. you see a massive whipsaw price action and corresponding volume in USD: quiet → huge volume → quiet again. Look at JPY, where volume starts moving up earlier, then a ton of trading, and then it sustains rather than just immediately dying off.
Taking the context of which exchanges in comparison do matter. Coinbase serves everyone, institutional & algo included. Bitflyer is japan’s largest exchange, almost entirely retail. What you see is Bitflyer Japan retail triggering systematics in USD to the downside (and not active individuals), which exasperated the downside move to japan retail longs’ shock & spring to action. I personally got 13 BTCJPY price movement notifications from various accounts & apps, vs 2 for US based BTCUSD notifications.
Global asset class.