- Bitcoin falls below the USD 10,000 mark by USD 300 in just a few seconds and thus fills the futures gap created over the weekend.
- The analysts agree that there is no reason for panic selling, but that BTC remains bullish.
After Bitcoin has shown a strong rally since January until today and yesterday even broke through the psychologically important USD 10,000 mark, a small correction is now following. Within a few seconds, the price fell by 300 USD to a temporary 9,850 USD and thus recorded a minus of almost 2% within the last 24 hours.
The Bitcoin futures closed on Friday at a price of USD 9,850. Since Bitcoin was able to rise to 10,150 USD over the weekend, a difference of more than 300 USD has arisen. Since the CME offers cash settled Bitcoin Futures only during the week and is closed on weekends, some “CME Bitcoin Future Gaps” have arisen since December 2017.
This alleged gap was closed this morning within a few seconds, when Bitcoin fell by USD 300 to USD 9,850. In technical analysis, the occurrence of a “gap” is considered a meaningful indicator of price movements. Nevertheless, future gaps are still controversial in the community, as this phenomenon does not always lead to a guaranteed price movement.
A few minutes ago, a Bitcoin whale on BitMEX bought BTC for almost USD 2 million and benefited from the short-term bounce, as data from WhalesTrades show.
Experienced Bitcoin trader Josh Rager describes that Bitcoin has finally broken the downward channel of September last year. Furthermore, Bitcoin was able to reach higher local highs and lows, so Rager is also bullish and Bitcoin could continue to rise in the near future. Bitcoin Analyst Parabolic Thies also warns to stay calm and states on Twitter that Bitcoin’s sudden flash crash could be expected and there is no reason to worry as long as Bitcoin remains above the important support level of $8,800.
The prestigious Trader Filb Filb is also showing bullish sentiment for Bitcoin, stating that Bitcoin could rise to $11,500 after another small correction as Bitcoin broke the strong resistance along the $9,500 level. In a recent commentary he states:
This was a fairly mild dip. A backtest of the weekend breakout and the CME gap was a high probability.
The Altcoin market follows the short-term trend of Bitcoin. Ripple (-2.90%), Ethereum (-3.09%) and Bitcoin Cash (-2.74%) are also experiencing a correction, as data from our price overview shows. Total market capitalization has fallen from USD 290 billion to USD 281 billion in the last few hours.
IOTA has been able to settle the recent dispute between founders David Sønstebø and Sergey Ivancheglo and resolve all other legal issues. IOTA is also making great progress and recently published the Alphanet for Coordicide. IOTA’s price has stabilised and is now trading at USD 0.3045, down 2.53%.
No reason to panic
Bitcoin started the new year with a price of just under USD 7,000, so the current correction is completely normal and healthy for the entire cryptocurrency market. Many analysts, including Mohit Sorout, continue to be bullish, describing that “dips are there to buy” and the technical indicators support this statement.
It remains to be seen whether Bitcoin and the rest of the crypto market will see a prolonged correction or the bulls will take over.