Bitcoin’s current death candle: Bloodbath crash
No one really knows why cryptos are crashing, and we mean by that Bitcoin and altcoin prices being massacred, and slaughtered in what looks like a bad horror movie.
Hussein Sayed, Chief Market Strategist at FXTM, comments on Bitcoin’s crash, saying: “Cryptocurrencies had our attention again Wednesday after Bitcoin slumped more than $500 in less than an hour.”
“After spending almost two and a half months in the range of $6,000 – $6,800 some traders thought that finally, Bitcoin’s price action had steadied. This perception changed on Wednesday and reminded us that cryptocurrencies are still an extremely volatile asset class.”
Sayed adds: ”It wasn’t just Bitcoin that crashed by more than 10% yesterday to trade at its lowest level since October 2017, there was a sea of red across the crypto space. The crypto market lost $30 billion in 24 hours, from a market cap of $210 billion to almost $180 billion.”
Image courtesy of Marketcap
Today Bitcoin crashed and is trading at approximately the same price as one year ago.
On November 12, 2017, Bitcoin touched the $5542 mark before climbing all the way up to almost $20K on December 17.
According to Ethereum World News (EWN), one can easily make out the massive “death candle” that took the price of Bitcoin (BTC) all the way down to $5,600, its lowest point in over a year.
Apart from BTC, all top-ten altcoins are presently in the red as massive selloffs dominate the market. Ethereum is at just above $180, falling more than 14%.
XRP is also another casualty of the market selloff, falling by more than 12%.
EWN said theories as to what might be responsible for the fall include whale manipulation, bear market breakout, and pressure from the upcoming Bitcoin Cash hard fork.
Some have blamed the initial fall on uncertainty around a hard fork or effectively a software upgrade in Bitcoin cash.
Over the course of four days from Nov. 2–6, the price of bitcoin cash surged 49% to reach a two-month high, after major cryptocurrency exchanges Binance and Coinbase announced their support for the upcoming hard fork, reports Coindesk.
However, the selloff accelerated after Bitcoin breached the key technical level of $6,000.
BKCM founder and CEO Brian Kelly, a cryptocurrency fund manager told CNBC that the sharp downturn had to do with bitcoin cash, which splintered off in August 2017 from regular bitcoin with the goal of being able to process more transactions.
He said some traders are concerned the bitcoin and bitcoin cash markets would run into a slowdown or “chaos” after the software upgrade.
The BCH/USD pair did move down and broke the $500 and $480 support levels, ending up dropping by around $100 and trading close to the $400 support.