Bitcoin has dropped to new levels today and impacted the cryptocurrency market. Compared to yesterday, today's prices are even more catastrophic: 17% in less than 15 hours down to the area below $ 6000. Like 3 previous attempts to overcome the $ 8K barrier, Bitcoin has fallen once again and cannot sustain any upward momentum in the market.
BTC / USD | Source: Trading View
BTC began to plummet at 7 am on March 12 (Vietnam time), causing a liquidation of $ 3.4 million. Worse, the liquidation amount increased at 8 o'clock, when the market reported the expiry of the $ 5.6 million contract. However, along with falling prices, long orders continued to be liquidated, contributing to the common negative sentiment in the market. In fact, the morning of March 12 saw the market liquidate $ 10.5 million, then an additional $ 5.1 million.
Total liquidation of the day amounted to $ 47 million, with the seller contract of $ 36 million expiring.
The bear attack is not limited to the BTC market, but also to altcoins. ETH has lost 30.56% at the time of writing in the last 24 hours and is currently trading at $ 137, which occurred when the $ 7 million futures contract expired. Of the total liquidation, $ 6.6 million was liquidated long order, while $ 425K was the liquidation of the purchase.
The correlation between Bitcoin and other altcoins like ETH and XRP is very high. The correlation coefficient between BTC-ETH and BTC-XRP was above 0.64, also known as Pearson correlation coefficient, which means there is a moderate to strong correlation between assets.
Source: Coin Metrics
Due to the strong correlation between BTC and XRP, the third largest cryptocurrency dropped 25.78% and once again sank below the $ 0.2 level. The value of XRP is currently at $ 0.15.
“Them ta plummeting very fast”
NekoZ Titan Ventures co-founder did not expect any upward movement. On his Twitter page, he wrote that Bitcoin is likely to drop below $ 7,000. And by this time it has come true!
I'm sorry folks, $ BTC just doesn’t look good.
Fell out of bottom trendline of this downward channel I originally drew.
I don't see us staying in the 7s anymore 😓 pic.twitter.com/ApdVZmG3ts
– NekoZ (@CryptoNekoZ) March 12, 2020
“I'm sorry everyone, BTC bad prognosis.
Off from trend line bottom of the descending channel but I drew original.
The price will not hold the $ 7K level again”
The bitcoin price shows that bulls suffer more from the general uncertainty in the stock market. After a temporary stabilization for a day, BTC crashed violently.
The extreme panic and rapid movement in the futures market quickly erased the value, crashing bitcoin below $ 6,000, an unprecedented level since the 2019 incident.
The recent price decline has occurred with relatively low volumes of $ 41 billion. The crash happened despite reports of new USDT flows flowing into the ecosystem. The newly pumped USDT now cannot resist panic selling.
After the initial shock, Bitcoin price has recovered somewhat to $ 6,042, but that does not mean escaping danger. Previous predictions have seen BTC's maximum plunge range from $ 7,000 to $ 6,000. But now, there are predictions of a drop to $ 5,000 or even an accident to $ 3,000. BTC is still very volatile.
Last support pic.twitter.com/ojQ3dgDdMy
– Alejandro 🇪🇸 (@ Pastore1314) March 12, 2020
A break below the long-term uptrend can send BTC to the entire lower price range, abolishing previous expectations for a year of smooth price action, culminating in a halving rally. Now, Bitcoin is once again in an almost undiscovered territory, showing its price action does not follow the safe haven story.
The drop may not be over, with territory under $ 6,000 still vulnerable.
$ 59.8 million Bitcoin ok moved on
The current dip is considered a holding period and achieves higher stability or valuation, or an investment entirely at a much lower price. With global uncertainty, Bitcoin faces a dramatic phase of decision making.
Whale sales also accelerated in the past day, as large orders placed downward pressure before buying. But the accident quickly created a new wave of panic. The recent sell-off has collapsed the entire market, lowering the cryptocurrency market capitalization to $ 152 billion, the lowest level since the protests in early 2020.
While prices continue to fall, a large amount of Bitcoin continues to move between unknown wallets and exchanges.
When the price dropped to the $ 7400 area, Whale Alert detected two consecutive Bitcoin transactions being moved. There are 1871 BTC ($ 21.7 million) moved between unknown wallets and exchanges Binance and Huobi.
After the unexpected price of “toang” about $ 5900, there were three more major transactions. This time, 8,000 BTC ($ 38.1 million) were moved between unknown wallets and exchanges like Binance and Bistamp.
Some in the cryptocurrency community believe that Bitcoin whales are manipulating prices to low prices to buy more cheaply.
“Do not panic. Please slogical thinking”
Trader Jacob Canfield asked other traders to stop panicking and implement a plan to help them focus. He believes that Bitcoin can only go much lower or lower and advises people to take precautions on two levels: weekly MA 100 and weekly MA 200.
Don’t panic. Think logically. Make your plan.
There are two support levels to watch for on #Bitcoin
The weekly 100MA ($ 7200- $ 7500) and the weekly 200MA ($ 5000- $ 5500) (where we bounced at $ 3400)
Wait for a reaction. Be patient.
No need to rush in front of a moving train. pic.twitter.com/U93T4k8Ksw
– Jacob Canfield (@JacobCanfield) March 11, 2020
“Do not panic. Please slogical thinking. Your planning.
There are two level support need follow of the Bitcoin
MA 100 weekly (7.200 – 7.500 dollars) and MA 200 weekly (5.000 – 5.500 dollars) (where prices have risen from 3.400 dollars)
Wait for the response. Please kIen ring.
No need to rush in front of a moving train”.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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