LUNA is Rekt - The How and Why Terra UST was the 3rd biggest stable coin and lost its $1 peg causing LUNA to spiral
Once UST lost its peg from $1 to for example $0.50, someone could buy 100 UST for $50
and redeem it for $100 of LUNA and then sell that to USDT — making money on the arbitrage.
This essentially is what triggered the Death Spiral for LUNA because the price of LUNA is
dropping with the peg, it became race to redeem for LUNA before the value drops below
the redemption price
The UST peg failed for two main reasons:
Curve pool imbalance (On Chain Selling)
$350m UST was swapped for USDT using the Curve protocol. This left a disproportionate amount
of UST versus other stablecoins in the pool for users to swap against, thus lowering the
value of UST "on-chain"
Curve is a crucial piece of the DeFi ecosystem, allowing users and dApps to swap stablecoins efficiently.
The massive selling of UST on Curve created an imbalance in reserves, leading to the value of UST falling below the peg on the protocol.
The remaining portion of UST withdrawn from Anchor protocol was sold on centralized exchanges
like Binance driving down the value on those markets as well (Off Chain)
Crash
Peloton: Pedalling all the way down!!Peloton
Short Term - We look to Sell at 14.90 (stop at 21.60)
The primary trend remains bearish. The continuation lower in prices through support has been impressive with strong momentum and shows no signs of slowing. We can see no technical reason for a change of trend. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 15.00 resulting in improved risk/return. Worse than expected earnings will add to bearish confluence.
Our profit targets will be 0.00. (Technical Crash)
Resistance: 15.00 / 17.00 / 19.00
Support: 10.00 / 8.00 / 6.00
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TERUSD: The Anatomy of a Crash!!!!TERUSD
Intraday - We look to Sell at 31.98 (stop at 44.80)
The primary trend remains bearish. Price action continued the aggressive move lower and looks set for follow through selling today. We can see no technical reason for a change of trend. Further downside is expected.
Our profit targets will be 1.30 and 0.00 -This is technically a market crash!
Resistance: 10.00 / 20.00 / 30.00
Support: 0.00 / -20.00 / -40.00
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
What if this time isn't different? A 2 year scenario projecting the financial crisis of 2008-2009 into the future
Chart (W, LOG):
Stocks: The averaged futures for SPX, NAS and DJ were weighted so that a 1 point change will imply the same change in $ terms. (For weights see www.barchart.com
200MA, 50MA, and 21MA
Today's price and date: at the intersection of the cross.
Financial crisis: Purple box on the left
Implied scenario: Purple box on the right. Left edge starts 10/5/2022 ("Today" .. for the next 10 min)
Methodology:
The scenario is a scaled up copy of the box at 2008-2009. It is stretched to fit the current price, and it's 3 MA's.
For simplicity the price / time aspect ratio was preserved.
Criteria for 'best fit' (using IEI ) were the absolute level and curvature of the 3 MA's. In other words, the distance between the MA's, their slopes, and the speed each slope was changing.
Main Implications:
The scenario implies a crash (ripped from Feb 2009) beyond the March, 2020 COVID low, as far as the highs of 2015. This is after the end of QE, when Greece went into default and the Yen was devalued overnight .
"Bottom" of the implied crash is one year from today (10/5/2022).
Notes:
1. IEI : I eyeballed it
2. Gann would not be happy and the result could be different on a RENKO or equivalent treatment of time (a great follow up idea)
3. The night the Yen was devalued I held positions in gold in bond futures (GC and ZB). I have used stops without exceptions from that day on.
best graphics:
Bitcoin.... We Buy Fear & Sell Greed.For everybody that wishes they bought Bitcoin at $30,000 when it was a $69,000 well now is your chance to get in at a super discount! Don't be that guy or gal wishing they bought Bitcoin when it was low and didn't take action. We're very oversold on the Relative Strength Index registering at 17. Since the 2020 global shutdowns from Covid-19 the RSI has registered this low only 5 times in the past two years. This is a pristine opportunity to consider entering. Just saying..... I've personally been shopping myself these past 24 hours. Remember don't ape in and buy everything all at once! We could always go lower!
Much peace, love, health, and wealth!!!
Bitcoin overview marketDuring these days, Bitcoin made a crash during days as U.S. Federal Reserve made a hike interest rates a signal of tightening the U.S. Dollar in Forex market.
So, I was worrying in the Daily timeframe because broke down the EMA 200. And I suppose a possible bearish movement in Bitcoin price below $30,000 USD. But notice one thing that we're in the demand zone on weekly timeframe and it's important to know how the price action will make reaction in that key zone to watch out.
For example: in weekly timeframe it's look bullish, until doesn't broke down this market structure, we couldn't to confirm a change of trend. But fundamental analysis speak us that U.S. Dollar it's taking strengthening as global currency and more power
But it's important to watch out this key level of supply demand right now
I hope that this idea support you.
So, as I'm bearish in altcoins like Cardano and NEO, that expectative could to point that Bitcoin could to crash more than we expect. I have a clear mind that Bitcoin and cryptocurrencies it's in the bear market.
Luna can tank upto $19After the Luna crash, the whole cryptocurrency community is an awe and shock as the UST being the stablecoin, lost its value, hence, depleting the trust factor of crypto holders from UST and other stable coins.
Technically, we anticipate Luna tanking upto $19, and then take a buy position from the support.
S&P 500 Index ShortMultiple fractal signals are in alignment (1969-1929 price action very closely resembles that of 2000-2022), and monthly support may be flipping into resistance, suggesting a move down to the logarithmic support trend line. A fractal/repetition of the crash in 2008 would almost perfectly align with the expected support, acting as further confirmation.
Don't trust hopium sellersIt is a good thing to learn caution from the misfortunes of others. What's not as often discussed by all those crypto promoters (Youtube, Twitter, Telegram ...etc) is the great number of people who have lost significant sums trying to become rich by investing in crypto.
I hope everything is going well for you or at least you have some spare cash for the black Friday sales.
Ideas for $QQQ in months aheadDon't think crash is coming (yet). Or any real correction.
Earnings are too bullish for that, Fed is still keeping rates high.
I think we still have room for an impulsive blow off (again) out of a historical resistance to 400s range on QQQ before speculators will start taking profits, rates rise and this comes crashing down.
There is too much fear in markets now for there to be a real crash. Crashes occur at peak exuberance, and we have not reached that stage (yet).
I bet 2022 will be a bear market.
GFC Analog S&P ComparisonI took the Great Financial Crash and copy pasted it aligning it with the S&P ATH. I kept the % drawdown the same, and it aligned with the COVID bottom by coincidence.
Not a prediction in any way, shape or form. But it's an interesting exercise to visualise how the drawdowns and the timing worked out then.
Nasdaq about to test pre Corona High as support ?A triple measured move of the first wave down, would bring us exactly down to test the pre corona all time as support... This is nowhere near a prediction, just some autism TA :-D
That wave rallye we would be close to see at the moment would be very juicy though.. almost 20% rallye before we get that last nasty selloff...
DOLLAR UP // EURO ( CRASH )The strength of the dollar as a currency is increasingly present against other currencies, if the FED continues to raise interest rates in this way and the rest of the countries do nothing with their currencies, we would be talking about an increase in strength for the dollar currency (at least temporarily). An increase in the strength of the dollar, would make a large number of assets and currencies, such as the SP500, Bitcoin, Euro, etc... fall sharply.
We are at a critical point, as we have already observed in the previous Euro analysis. If the strength continues to increase, there is a high probability that it could reach the levels of 120. After that level. We would be faced with a new scenario. Where the dollar will ultimately decide the future strength or weakness of the rest of the assets. It would not be surprising that we are facing a final sprint for the dollar where before falling the dollar itself, it will take everything ahead. Good luck to all !
Bye Bye EURO !! ( CRASH )The levels on the euro's chart against the dollar are highly worrisome.
If the European Union does not quickly raise interest rates more aggressively, we could see the Euro fall to levels of €1=$1 or even lower at €0.8=$1.
We note that it has been in a bearish channel since about 2005, which it has been respecting in a demanding manner. At the same time we have no nearby supports that can hold the price, so the HIGHEST probability is to fall. The market structure predicts an abrupt and rapid fall towards these levels, probably without giving us any retracement, as happened in the past.
We have already broken the bullish guideline within the bearish channel and this is not good news, since there is no " REAL SUPPORT " by market structure ( I REPEAT ) The area where it is right now, is NOT a SUPPORT !!! .
Europeans can be affected by this, losing 20% of their wealth added to inflation added to the uncontrolled growth of taxes. :( . Best of luck to All, hope it helps to get a clean picture of the future of the EURO.
When will S&P500 finish its first correction wave ?!?Hello traders!
I think we are all looking at the indices charts that keeps falling with the effect of the crisis and economy management from the Fed and central banks.
**According to Truflation, the inflation rate is at 11.4% in the USA**
This economic crash is not yet to stop, we will be experiencing crazy time in the incoming month and years...!
BUT ANYWAY , today we are analyzing the S&P500 with the Elliott Waves from the crash of the Covid-19, and what we can see is that:
The 5 of the Impulse Extended Ending Diagonal Wave has been confirmed the 22 Nov '21
- An EED have 5 waves that are subdivided into correction waves 3-3-3-3-3.
- In an expanding diagonal ending, wave 1 is small, wave 3 is medium and Wave 5 is long.
Since then, we are in an ABC pattern that we are about to finish in the incoming week
For me, it is the first Wave of the correction pattern that we are about to be witness in the incoming month and until next year.
Because the worldwide economy is not looking good, in my opinion I would say that we are finishing Wave W of a WXYXZ.
ZOOM IN for a better view of the objectives that have been found for the end of the downtrend (light blue C of the ABC) :
1/// 4000 is strong by being the 100% of the ABC pattern
2/// 3900 is strong by being the 113% of the ABC pattern
3/// 3850/3825 is the strongest by being the 123%/127,2% of the ABC pattern and near the 38.2% of the entire Impulse Wave Retracement
ZOOM OUT for a better view of the overall structure of the S&P500
You can also check my analysis on the NAS100 where the structure is pretty much the same.
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Please feel free to ask question and recommendations in the comment section, I would be more than happy to answer your questions