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Crypto-Crash: Bitcoin price falls to critical level – $8,000 next?

  • Bitcoin has fallen from $9,700 to $9,097 in the last few hours and has unsettled many investors with the sudden drop in price.
  • The stablecoin Tether has again overtaken Ripple (XRP) to become the third largest cryptocurrency by market capitalization.

After Bitcoin failed five times to break the $10,000 mark in May, the Bitcoin price has fallen from USD 9,700 to USD 9,097 within a few minutes in the last few hours. Due to numerous buy orders, however, the price was able to recover somewhat at the time of writing and has risen again to $9,517.53. As a result of the recent price slump, BTC recorded a minus of 2.96 % in the last 24 hours. The market capitalisation has fallen from $180 billion to $175 billion.

Bitcoin Trader Josh Rager describes that there are currently heated discussions about Bitcoin’s Golden Cross and its potential influence on the further price development. Rager explains that the last time the 50 Daily Moving Average (DMA) exceeded the 200 DMA, the price fell by 60%. However, the price drop at that time in mid-March was caused by a “black swan”, the COVID 19 pandemic, so not a single indicator such as the Golden Cross should be used for trading decisions.

“Byzantine General” also warns to calm down, as Bitcoin has fallen sharply in price, but is still in the price range between $9,500 and $10,000. In his opinion it is too early to announce a correction or similar bearish scenarios. However, traders should still work with a stop loss to protect their capital from a further drop in price.

Big Chonis Trading shares this opinion and states that Bitcoin is still in a tight price range and that the next few hours will be decisive for the further development. Bitcoin could fall back to the $8,000 level again if the correction below the strong support of $9,300 is made, as there are no further strong support levels near the $9,000 mark.

Tether (USDT) overtakes Ripple (XRP)

The stablecoin Tether (USDT) has once again overtaken Ripple (XRP) in the ranking of the largest cryptocurrencies. Tether’s market capitalization has risen to $8.95 billion, well ahead of Ripple with a market capitalization of $8.87 billion. The Altcoin market follows the market trend of Bitcoin, with XRP showing a minus of 1.49 % to $0.20, ETH a minus of 1.74 % to $208.71 and Litecoin a minus of 3.25 % to $43.88.

Bloomberg as well as other analysts see the pressure of new money by the American central bank FED as a great opportunity for rising prices on the cryptocurrency market. The “helicopter money” could be used by investors to buy Bitcoin and thus have a positive effect on the further price development. The billion-dollar hedge fund manager Paul Tudor Jones shares this opinion and describes that Bitcoin will benefit greatly from an inflationary monetary policy.

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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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