BENQI/Tether Market Overview: Sharp Correction, Oversold RSI, and Bearish Momentum

• BENQI/Tether (QIUSDT) opened at $0.00736 and closed at $0.00569, with a high of $0.00744 and low of $0.00102 over 24 hours.
• Price collapsed sharply after 21:30 ET, dropping below $0.0065 and failing to recover, indicating bearish exhaustion.
• Total volume reached 208.9 million tokens, while turnover hit $1.25 million, with late-night divergence signaling declining conviction.
• RSI bottomed near 20, indicating oversold conditions, though volume failed to confirm a potential rebound.
• A bearish engulfing pattern formed at the 21:30 candle, followed by a deep pullback, signaling potential trend continuation.

Market Overview: QIUSDT on 24-Hour Timeframe

BENQI/Tether (QIUSDT) traded between $0.00744 and $0.00102 from 12:00 ET October 10 to 12:00 ET October 11. The pair opened at $0.00736 and closed at $0.00569, with a total volume of 208,868,850 tokens and a turnover of $1.25 million. A sharp decline in the late evening hours marked the key event, with price dropping below $0.0065 and failing to hold key support levels.

Structure & Formations

A critical bearish engulfing pattern emerged at the 21:30 candle (October 10), with the close at $0.00689 and open at $0.00720, followed by a deep decline. Later, a long lower shadow formed at $0.00533, suggesting some short-covering or attempted rallies, but these failed to hold above $0.00560. The structure indicates a strong bearish bias with potential continuation unless the price breaks above $0.00585, where a 61.8% Fibonacci level lies.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 15-minute chart have diverged significantly below the price after the late-night sell-off, reinforcing the bearish momentum. RSI dropped to near 20, indicating oversold territory, but failed to spark a meaningful rally. MACD remained negative throughout the 24-hour window, with bearish crossovers occurring after 21:30 ET. This suggests weakening bullish conviction and strong bearish control.

Bollinger Bands and Volatility

Volatility expanded dramatically between 21:30 and 22:30 ET, with the price breaking well below the lower Bollinger Band. This contraction followed by expansion is typical of exhaustion phases. The price has remained near the lower band since, indicating continued pressure. A retest of the upper band ($0.0058–$0.00585) could offer a short-term bounce, but a sustained move above this range remains unlikely without a large influx of buy-side volume.

Volume and Turnover

Volume spiked to over 122 million tokens during the sharp decline from $0.0072 to $0.0053, indicating significant selling pressure. However, the subsequent rally failed to attract matching volume, signaling a lack of conviction in the short-term buyers. Turnover also surged during the downtrend but dropped sharply after $0.0055, suggesting market participants are hesitant to commit further capital unless a clear reversal is in motion.

Fibonacci Retracements

Applying Fibonacci to the swing from $0.00744 to $0.00533, the key levels to watch include 38.2% at $0.00634, 50% at $0.00588, and 61.8% at $0.00541. The price briefly tested $0.00541 but failed to close above it, indicating a potential re-test of $0.0053 as a new support zone. A move back above $0.00585 could re-engage the 50% level as a dynamic resistance-turned-support.

Backtest Hypothesis

A potential backtesting strategy could involve entering long positions on a stochastic RSI crossover above 30 with confirmation from a bullish divergence in the 20-period volume profile. Short positions could be initiated on bearish engulfing patterns occurring near key Fibonacci levels (61.8% or 50%) with increasing volume. Given the current setup, QIUSDT may test $0.0053–$0.0052 as the next support cluster, while any rally above $0.00565 could be a signal to monitor for short-term exhaustion.