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Bitcoin price falls by $500, Ethereum and Ripple (XRP) follow

  • After yesterday’s rally, the Bitcoin price dropped to $10,000, within minutes from $9,750 to a temporary $9,200.
  • Long positions worth $28 million were liquidated on the BitMEX derivatives exchang.

After the Bitcoin price showed a strong rally yesterday from below $9,000 to almost $10,000, a correction followed in which Bitcoin fell by $500 from $9,750 to $9,200 in just 20 minutes. At the time of writing, Bitcoin has stabilized and still shows a plus of 1.58% within the last 24 hours, to a price of $9,450.

Bitcoin was able to break key resistance along the $8,000 and $9,000 mark during yesterday’s rally, so many analysts predicted that Bitcoin could move forward to the next strong resistance along the $10,400 mark. However, a rejection was made along the $10,000 mark.

The data analysis company Skew.com shows in a chart that during yesterday’s drop in Bitcoin price, within 20 minutes long positions on the derivatives exchange BitMEX worth more than $28 million were liquidated. This temporal correlation could be observed in many smaller corrections of Bitcoin in the last days and weeks. The influence of BitMEX on the Bitcoin price thus remains strong.

Source: https://analytics.skew.com/dashboard/bitcoin-futures

Popular trader Josh Rager said that Bitcoin must close above the $9,550 mark on the daily chart to continue its upward trend. If BTC fails to do so, Bitcoin could reach a new local high along the $10,000 mark, which will have to be defended before the price can rise further.

According to HornHairs, Bitcoin has so far moved above its personally set indicator, which is why he remains bullish. According to the trader’s analysis, Bitcoin has to close above the $9,350 mark, so that the price can rise to the $10,500 mark as its next target. He also says that there are good opportunities for traders as Bitcoin will continue to show high volatility in the coming days and weeks.

As we reported earlier, there was a gap along the $10,000 mark between the CME’s closing and opening prices last weekend. Crypto trader Teddy reports that this gap was closed by yesterday’s rally. Although this indicator is controversial in the community, Bitcoin has been able to close the gaps quite often in the past.

The gaps arise because the markets on the Chicago Mercantile Exchange (CME) are only open Monday through Friday and are closed on weekends. If, as happened recently, Bitcoin’s price closes at $10,000 on Friday and the opening price falls to $9,000 the following Monday due to poor performance, there will be a gap, which has almost always been closed in the past.

Meanwhile, the Altcoin market is moving in line with Bitcoin and is also moving sideways, leaving ETH at $ 200.64, XRP at $0.20 and Litecoin at $43.29.

Is the issuance of Tether responsible for the price increase of Bitcoin?

Since March 30, 2020, the market capitalization of Tether has more than doubled from $4.3 billion to $8.8 billion at the time of writing. Tether has thus even in the short term ousted XRP from third place among the largest cryptocurrencies in terms of market capital. The explosive issue is that Tether is suspected of deliberately influencing the Bitcoin price by printing new USDT.

While there is no proven causal study to support this statement, the printing of new USDT often coincides with a price increase of Bitcoin. The following chart shows the rapid increase in newly printed USDT since the end of March.

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About Author

Collin Brown

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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