Chart of the Day
The $40k on-chain price wall held fast against much pressure from the brief dip into the $39k territory. Longs command 65% of total liquidation triggered by the recent sell-off, with a dominance value higher than the previous one in early September, suggesting that many leveraged traders were trying to catch the falling knife. Near-dated volatility skew’s “crooked smile” (a long tail for strikes lower than the market price) confirms downside fears and suggests that the market is leaning bearish, or at least in the short-term. Despite the lingering impact of the Monday sell-off, the price of BTC is currently stabilizing above the $40k critical support and appears to be on its way to retest the $43k resistance level.
Talk of the Town
Remember the days when the crypto industry was abuzz with a crypto-friendly face taking the helm? Second thoughts, anyone? Securities and Exchange Commission (SEC) chair Gary Gensler issued another regulatory warning aimed at the crypto industry, underscoring the importance of protecting investors in the market and bringing crypto into regulatory purview. Referencing his background in blockchain technology, Gensler likened stablecoins to poker chips of the Wild West, and questioned the long-term viability of crypto should it remain outside of “a social and public policy framework”. On a separate occasion, Ben Zhou, CEO of Bybit, told the crypto community in a recent AMA session, that he remains optimistic about developments on the regulatory front. “Overall, I feel that regulation for the global crypto industry is a very bullish thing long term.” — Ben Zhou, CEO of Bybit