As the world witnesses another occurrence of the notorious date, Friday the 13th, speculation emerges about its influence on the financial markets, particularly the cryptocurrency space.
What Happened: While “Friday the 13th” might conjure memories of the blood-soaked slasher film franchise from the 1980s, the superstitions surrounding this day trace back centuries. Historical origins include references to Norse mythology, wherein an uninvited 13th guest, the mischievous Norse god Loki, disrupted a gathering of 12 gods, leading to an ominous association with the number thirteen.
In addition to its mythological roots, superstitions surrounding Friday the 13th have been linked to various historical events, including references in religious contexts and even Wall Street panics. Specifically, the 1907 novel “Friday, the Thirteenth” explored the notion of exploiting superstition to manipulate stock markets, hinting at the potential impact on financial transactions.
Coinciding with the superstitious date, Matrixport, a research firm, delves into technical indicators for Ethereum ETH/USD, the second-largest cryptocurrency. Their analysis suggests that breaching key support levels could trigger a cascading effect, leading to potential liquidations affecting not only Ethereum but also Bitcoin BTC/USD, along with overall cryptocurrency sentiment.
"Ether prices are trading at quite precarious levels that, if pierced, could set off cascading liquidations. Notably, the September low of $1,550 appears to be the last level of support, with subsequent levels at $1,430 and $1,300. A breach of these levels would imply declines of -9% and -17% from the current spot prices, potentially leading to quite a significant drawdown," the research noted.
Will The SEC Finally Approve Long-Awaited Bitcoin Spot ETF? Ask industry experts directly at Benzinga's Future of Digital Assets event happening in NYC on Nov. 14, 2023. Be a part of the discussions where you won't just be a passive spectator. Don't let this chance slip away – secure early bird discounted tickets now!
See More: A Stay At The Floating Palace From James Bond's ‘Octopussy
Why It Matters: Oct. 13, 2023, falling on a Friday raises further questions about whether Friday the 13th superstitions could bring misfortune to crypto enthusiasts.
Digging into historical data from prior occurrences of the 13th and 23rd Fridays since Bitcoin’s inception reveals interesting patterns.
Bitcoin prices saw subsequent increases of +14% and +66% one month and three months after these particular Fridays, reported Matrixport.
"Curiously, despite these technical signals, the broader sentiment appears to discount the
possibility of a significant sell-off," the research firm said. However, the gradual selling pressure on Ethereum positions threatens to test the $1,500 support level, as per the research note.
It is worth noting that expectations of a bullish trend leading up to the anticipated Bitcoin halving event in April 2024 continue to buoy market sentiment.
Price Action: At the time of writing, ETH was trading at $1548, down 0.16% in the last 24 hours, according to Benzinga Pro.
Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
