Crypto markets have just hemorrhaged $20 billion in their largest selloff of 2020. Bitcoin plunged almost a thousand dollars in a couple of hours but what has caused it?
Just when crypto markets started to look bullish again with total capitalization approaching $300 billion a huge selloff occurred in a matter of hours. Around $20 billion exited the space in the year’s largest single day dump dropping total cap back below $280 billion.
Bitcoin Dumps 10%
From an intraday high of $10,300, bitcoin dumped to a low of $9,300 shedding a thousand dollars in a couple of hours. Since then prices have moved up marginally to settle around the $9,600 level but further losses look likely.
BTC price 1 hour chart – Tradingview.com
Analysts warned yesterday that unless BTC makes a new higher high above the 2020 top of $10,500, the correction is likely to resume.
That scenario played out in late trading on Wednesday when one huge red hourly candle smashed prices down almost $900. From here the asset is likely to return to the $9,300 level where there is support.
Analysts and traders are noting the swing failure pattern and the long wick below the previous lows indicating that there could be liquidity in this area.
This is my thinking. I shared the SFP on the 17th, the wick below the previous swing low. We now have 2 more 4 hour candles with wicks below that line. That indicates there's liquidity in that area. It could be fully tapped now, hence the lower orders in case. $BTC pic.twitter.com/uMhFbrq5Fs
— The Wolf Of All Streets (@scottmelker) February 20, 2020
Speaking of liquidity, Datamish charts are reporting that over $150 million in longs were liquidated on BitMEX which caused the cascade of sell orders to be executed.
BitMEX long liquidations – Datamish.com
Failure to hold the $9,300 zone will see the asset fall into the high $8k area where there is further support. If this also fails to hold then BTC could be back at $8,200 pretty quickly which would result in a 20% correction.
CNBC Counter Trader?
CNBC’s ‘Fast Show’ has recently called bitcoin ‘red hot’ stating that it continues to climb higher which has historically been a counter trade indicator.
Bitcoin up more than 30% this year and Morgan Creek Capital's @MarkYusko says this is why the red hot rally is just getting started $BTC pic.twitter.com/L6a9nrEWt7
— CNBC's Fast Money (@CNBCFastMoney) February 19, 2020
When asked why it was down at the moment Morgan Creek Capital’s Mark Yusko said it didn’t really matter because it has been in similar situations before. His advice has always been ‘buy it and stack sats’ and that still applies today despite the plunge.
Markets always correct after any sustained period of upward momentum so this is nothing to be concerned about. Even a move back to $8k would be normal for the asset but any lower may start ringing alarm bells.
With stronger network fundamentals, weakening global economies, and an approaching halving, it will not be long before bitcoin is marching back upwards again.
Where will the bitcoin correction stop? Add your price predictions below. origin »
Bitcoin and the aggregated crypto markets have incurred immense volatility over the past several days and weeks, which has come about as Bitcoin’s bulls and bears have engaged in an intense battle that has, over the past 24-hours, favored BTC’s bears.
Ethereum (ETH) has lost nearly all the momentum it had incurred over the past week, with its recent rally to highs of $148 being met with insurmountable resistance that has since forced it into a firm downtrend.
There has been little to get excited about this week on crypto markets. The bears have ramped up the pressure and the selloff has continued resulting in $14 billion leaving the space since late last week.
After facing a swift selloff overnight, the aggregated crypto markets have been able to post a strong recovery today, with XRP and most major altcoins surging as Bitcoin reclaims its position within the lower-$8,000 region...
By CCN Markets: Bitcoin plunged below $10,000 on Thursday after a violent three-day selloff. But now is not the time to panic. If history is anything to go by, now might be the best time to accumulate bitcoin.
The bitcoin price soared more than 10 percent over the last 24 hours, briefly hitting $11,840 on Coinbase. The surge higher coincides with a blistering selloff on the Asian stock markets, triggered by a breakdown in US-China trade relations.
Dow Jones Industrial Average (DJIA) futures rose on Thursday after the stock market’s worst day in months. The recovery comes as traders search for nuance in the Federal Reserve’s landmark rate cut on Wednesday, the first in a decade.
The crypto market’s steep selloff over the last few days has driven the total market capitalization of all cryptocurrencies from a high of $294. 9 billion to lows of $249. 1 billion this week.
The big Bitcoin correction has not been unexpected. The mess it has left the rest of the crypto world in, however, is still being questioned. The altcoin apocalypse has deepened this Monday morning as double digit losses are flashing red across the boards today.
Yesterday’s Bitcoin pullback has extended into Friday as further losses are mounting. The selloff has slowed however as BTC searches for its short term bottom and traders seek buying opportunities.
You learn ten-times more about a market when it goes down than when it goes up. And during yesterday's 10 percent bitcoin crash, we learnt something important. We learnt which altcoins stay strong in a crypto selloff.
Crypto markets falling back on Monday; BSV, XRP, and Tron dropping back, Litecoin and NEO stay afloat. Market Wrap Crypto markets are seeing red as we begin another trading week. Most of the majors are in decline following Bitcoin’s failure to hold gains and break $8,000.
Crypto markets back in action; Bitcoin surging above $6k, BCH and BSV following. Market Wrap Crypto markets have been bolstered back up to their highest levels of the year again today. There was no selloff in the wake of the Binance hack and Bitcoin has finally broke resistance and made it over the psychological barrier.
Crypto markets pull back slightly; Bitcoin recovering, Ethereum back at support, Tron a rare green gain. Market Wrap As expected crypto markets have pulled back a little as the news of the Binance hack reverberates around the globe this morning.
Crypto markets in decline; All assets falling, Bitcoin Cash, BNB, Cardano and IOTA falling harder. Market Wrap Crypto market momentum appears to be running out of steam and analysts are calling for a pullback.
Bitcoin price is trading up 3% so far this week at $5458, despite being down from the yearly highs of $5627 achieved on Tuesday. As we march towards the weekend, let’s take a closer look at what’s going on in the markets.
Crypto markets pulling back sharply; Litecoin, EOS, Bitcoin Cash and SV getting smashed, Crypto. com gets fomo. Market Wrap As expected crypto markets are finally dumping as we end the week. Over $16 billion has been lost as markets fall from their 2019 high back to $170 billion or so.
Crypto markets correcting this Sunday; Bitcoin Cash, SV and Crypto. com dumping, BNB, BitTorrent Token and Tezos still up. Market Wrap Crypto markets have started to pull back following their $6 billion pump yesterday.
Crypto markets have found a new level; Binance Coin pumping hard, EOS and Maker still sliding. Market Wrap Monday’s crypto market dump has found a new level and the selloff has abated over the past 24 hours.
Market Wrap Crypto markets in selloff this Friday, XRP dumping recent gains, Tron and Stellar falling, NEM collapsing. As expected crypto markets are starting to fall back again as we end the week.
FOMO Moments Crypto markets still falling; Ethereum, BCH and Cardano dropping, Eternal Token gets epic pump. Things are in decline again in crypto land as the selloff continues and the recent rally unravels.
FOMO Moments Crypto markets recover a little from Christmas crunch; Bitcoin Cash, climbing, Polymath pumping. The Christmas crypto selloff did not last long and markets have already found support and begun to rise again.
FOMO Moments Cryptocurrency markets in predictable pain as the week ends; Bitcoin Cash, SV, getting killed, Stellar not far behind. As if scripted by some kind of delirious director, crypto markets are dumping again this Friday.
FOMO Moments Crypto markets plunging perilously low; Bitcoin Cash and EOS collapsing, Bitcoin SV climbing the chart. The slow selloff that has been happening all week has accelerated today as crypto markets crash to their lowest levels of 2018.
FOMO Moments A bounce from another 2018 low has occured; Stellar, Litcoin, Cardano, Zcash and Tezos recovering. A minor bounce has offered a little relief for crypto markets this Monday as they are still reeling from another mass selloff over the weekend.
Crytpocurrency markets are in turmoil right now, most currencies seeing drops of over 10%. What is the reason for the sudden selloff? Most likely due to the drama regarding the upcoming BCH fork.
Crypto markets collapsed as the Bitcoin Cash hard fork panicked investors today. After weeks of speculation regarding the split, which is led by rival billionaires, the market finally decided that the uncertainty over Bitcoin SV and Bitcoin ABC had reached breaking point.
FOMO Moments Markets are still generally flat; Nem, Zcash, XRP, and Iota climbing, Stellar and MOAC sliding. Red is still dominating most cryptocurrencies this morning as the slow selloff continues.
Digital assets deviated from established behavior patterns on Thursday as a global stock market selloff failed to create a significant impact on the crypto market. During Asian trade, Bitcoin, Ethereum and Ripple’s XRP remained slightly low-key but didn’t experience a catastrophic fall that they experienced during the previous stock declines.
With the exception of the SEC’s FinHub announcement, it has been a quiet week for regulatory news — something we’ve been getting a lot of recently as U. S. officials clamp down on unscrupulous coin offerings and crypto companies.
The cryptocurrency markets posted some slight gains on Friday after seeing a massive selloff on Thursday that sent many altcoins down by more than 10% and pushed Bitcoin to its range support at $6,200.
Chart for EOS/USD (1W) Cryptocurrency markets plunge deep in the red, dancing to the tune of Bitcoin (BTC). Eos (EOS) investors are not moved by this confusion. In fact, as the above weekly chart for EOS/USD shows, the price of Eos (EOS) has not corrected the same way as the rest of the market.
FOMO Moments The weekend selloff has begun again, Ethereum, Bitcoin Cash, Litecoin and Cardano dumping. As predicted in yesterday’s crypto market roundup, things have dumped today. This cycle has repeated itself several times over the past couple of months – a few days gaining then one big dump losing it all.
FOMO Moments Markets still falling back; XRP up but Ethereum still in pain. Crypto markets are still bearish today following yesterday’s 15 billion dollar dump. What seemed to be signs of another small rally ended a few hours ago when markets turned south once again.
FOMO Moments A new market low is imminent; Ethereum is in a world of pain. The weekend selloff has continued unabated and markets are dangerously close to another new low for 2018. Dropping below $200 billion again markets are in a bad way as nearly all cryptocurrencies are deep in the red this Sunday morning.
FOMO Moments Markets are still very depressed; Dash and Dogecoin defying the drop. There has been no recovery from this week’s big crypto selloff and markets are still down. Very little movement has occurred over the past couple days which leaves markets at just over $200 billion, very close to their yearly lows.
FOMO Moments 2018’s biggest daily purge has seen cryptos crash; Ethereum, Bitcoin Cash, EOS, Monero and Dash in a hurt locker. Crypto markets have been absolutely smashed following a Bitcoin selloff that started yesterday.
FOMO Moments Markets inch up slowly; Lisk, Tron, 0x and Nano making gains. Following yesterday’s irrational FUD fuelled SEC selloff, crypto markets have been stable and have not plunged any further.
FOMO Moments Markets are still falling, Ethereum Classic and Zcash defying the drop while Iota suffers. The bears are still in control as we start another week in crypto land. The selloff which started around two weeks ago has continued unabated as market capitalization drops back down to just over $250 billion equating to a.
FOMO Moments Markets are dumping in crypto land; XRP hangs on but Bitcoin, VeChain, Icon and Polymath slide. Markets have dumped overnight and the selloff has continued leaving crypto land in a sea of red this morning.
FOMO Moments Markets are back in the red; Polymath is pumping but Cardano, EOS and Stellar are getting hammered. The bears have regained control of crypto markets and the selloff has accelerated today.
FOMO Moments Crypto land is moving slowly; altcoins gaining today include Bitcoin Diamond, Nem, Bitcoin Gold, and Holo. Monday morning in crypto land is a positive one for Bitcoin as markets have made more gains since the selloff last week.
FOMO Moments A red start for the weekend in Crypto land; altcoins falling heavily are Dash, Cardano, Monero and Nem, only VeChain is climbing Anticipation of a quantifiable recovery for crypto markets has faded as we enter the weekend.
FOMO Moments Current performing altcoins are Ethereum Classic, Binance Coin, Qtum and Bitcoin Diamond. The massive selloff that initiated with a huge crypto dump on Sunday has continued into the week.
With Bitcoin’s relative-strength indicator slumping to levels not seen since the March 2020’s Black Thursday crash, Raoul Pal asserts BTC is overdue for a bounce.
Weekend trading on bitcoin markets has been profitable with another sustained move higher. Early trading on Monday however tells a different story as $10k was rejected again, analysts are now eyeing another pullback.
A correction after such a monumental crypto rally is to be expected though some industry observers will always see the negative side of things. Bitcoin has largely held on to gains though it appears to be weakening, while the altcoins are falling back at a faster rate.
