Bitcoin shocked most traders and investors who decided to enter the market and hold cryptocurrencies, hoping for an extended uptrend that will break 2017 levels. A break of USD 20,000 for Bitcoin was highly anticipated, and everyone was awaiting a sooner than expected break in this all-time high price. This all changed after recent events where prices across the cryptocurrency markets fell at the same time. What was the main cause of this price dump, and will prices manage to recover?
Midnight Volatility – A recurring phenomenon
Around 1 am UTC+1, the price of Bitcoin broke the USD 19,000 price level, and volatility increased. Midnight increased volatility is a recurring phenomenon highly discussed here at CryptoTicker, where volatility tends to elevate around this hour, which is a midpoint between the open of Asian Markets, and the close of US markets.
Bitcoin price prediction – our TAs predicted previously the current selloff
If you are an avid reader of CryptoTicker’s articles, the current price adjustment wouldn’t have come as a surprise, as we specifically stated a potential price adjustment back to the USD 18,000 and USD 17,500 in a previous article, and pointed out why investors should feel concerned after an extended price increase. Although prices managed to fakeout below USD 17,500, prices showed a strong comeback from USD 16,300 back to USD 17,200 levels.
When prices broke the USD 19,000 level and the black uptrend (figure 1), a panic mode spread throughout the markets, and a panic selloff happened all across the cryptocurrency market.
Important areas to consider
In trading, there are no ups without price adjustments, even in the best-case scenarios. That’s why traders and investors should always manage their risks by implementing strong stop-loss strategies, or areas where they should consider getting out of the market. Below are short term areas to consider:
- USD 17,500
- USD 16,600
- USD 15,300
If prices fail to go back to the USD 18,000 area, we might see a short term bear market, although it is not probable, as this year, and contrary to 2017, the market rise is not due to hype and newbies buying cryptocurrencies to get rich quick, but it’s from institutional investors and big corporations.
The cryptocurrency market as a whole lost USD 90 Billion in 24 hours
In the last 24 hours, all cryptocurrencies adjusted in prices. This price correction is usually healthy and gives the market a “breather” to later continue their uptrend. This specific correction was stronger than usual because it’s been longly overdue. Here are the top 10 cryptos by market cap:
1- Bitcoin (BTC) : – 10.06 %
2- Ether (ETH) : – 12.68 %
3- Ripple (XRP) : – 21.01 %
4- Tether (USDT) : 0 %
5- Bitcoin Cash (BCH) : – 18.83 % (surpassing ChainLink and LiteCoin)
6- Chainlink (LINK) : – 17.38 %
7- Litecoin (LTC) : + 15.35 %
8- Cardano (ADA) : – 19.03 % (surpassing PolkaDot and Binance Coin)
9- Polkadot (DOT) : – 14.36 %
10- Binance Coin (BNB) : – 15.84 %
Stay Ahead, Stay Updated
Rudy Fares
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