Bitcoin continues to trade at four figures today as a new wave of bearish momentum sends the asset plummeting below $9,600. A couple of big red candles dumped bitcoin over a thousand bucks in a matter of hours and has left the asset scrambling to find support.
Bitcoin Drops Over $1,000 in a Day
This is not the first time BTC has shed over a thousand dollars in a day, and it probably wont be the last. From a Monday high of $11k bitcoin dropped to settle at the mid $10k level before plunging into four figures during late trading yesterday.
According to charts from Tradingview, BTC bottomed out at $9,250 before climbing back slightly. The recovery has not been strong and further losses are expected. At the time of writing bitcoin was trading at 00. Daily volume has returned to $25 billion but it is largely bearish at the moment, as traders take profits from the recent rally and newbies who bought at the top panic sell.
The move has dropped bitcoin’s market capitalization back to $170 billion and resulted in a loss of $30 billion from the global crypto market cap in just 24 hours.
As per usual, chartists and traders are looking for the next levels of support which appear to be back in the $8,000s as predicted earlier this week. Josh Rager is sticking by his $8k call but adds that altcoins are likely to dump even further.
My current Bitcoin view for max correction is near $8k (give or take 5%) which would be a near 40%+ pullback. This also means that altcoins would retrace at a much deeper %
80% correction would be devastating to altcoins
My current Bitcoin view for max correction is near $8k (give or take 5%) which would be a near 40%+ pullback
This also means that altcoins would retrace at a much deeper %
And you thought Amazon Prime Day had good deals https://t.co/WphjS5wKAM
— Josh Rager 📈 (@Josh_Rager) July 16, 2019
At the moment bitcoin has corrected 33% from its 2019 high so it stands to reason that there could be further to fall. Crypto analyst and trader Alex Krüger correctly pointed out that the harder they pump, the harder they dump.
Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.
Altcoins Still Melting
There has been no respite for the altcoins in the market as of yet, with many still in free-fall during the Asian trading session today. Ethereum has matched bitcoin’s dump with a 12% slide back to $200, EOS has been smashed even further sliding back to almost crypto winter lows of $3.70.
Also dumping double digits at the moment is Litecoin, BSV, Tron, Cardano, Monero, Dash, Chainlink, IOTA and NEO. It seems like the widespread rumors of the threat of an outright bitcoin ban in the US has put everyone into panic mode this week.
Will bitcoin dump back to $8,000 again? Add your thoughts below.
Images courtesy of Tradingview, Twitter @Josh_Rager, Shutterstock