- The Bitcoin price fell from $9,500 to $8,100 within a few minutes yesterday and has shown high volatility since then.
- Experts are currently discussing whether yesterday’s price collapse has already brought the rally to an end.
After Bitcoin fell from $9,500 to $8,100 yesterday due to a liquidation wave of more than $220 million on BitMEX, the Bitcoin price has recovered slightly in the last few hours and stands at $8,712.20 at the time of writing. The volatility has increased further, so that both great opportunities for profits but also great risks can be found in the current market.
Experienced trader Josh Rager describes that Bitcoin will have to close above the $8,600 mark in order for BTC to start another uptrend. He outlines that volatility will continue to rise and the Bitcoin price will have to test $9,400 again before a new high can be drawn.
Nice wick on the 4 hour so far, buyers stepping in
More downside could come but holding above $8600 support would be a good start pic.twitter.com/175dKp0I1P
— Josh Rager 📈 (@Josh_Rager) May 10, 2020
Big Chronis Trading describes that, as expected, a gap has formed between the closing and opening price on the CME, and this gap is visible on the 4-hour chart at the $10,000 mark. In the past, this gap has often been closed by a corresponding price movement, so according to the trader, there is a good chance that the Bitcoin price will rise to this level to close the gap.
The markets on the Chicago Mercantile Exchange (CME) are only open Monday through Friday and are closed on weekends. When the price of Bitcoin closes at a high level, such as $10,000, on Friday, as it did last Friday and this Monday, and falls to just under $8,700 due to strong sell-offs, a price difference, also known as a “gap”, is created.
— Big Chonis Trading😷 (@BigChonis) May 10, 2020
Economist Nouriel Roubini explains on Twitter that Bitcoin continues to be dominated by whales, as such sharp price drops as yesterday are only possible in an unregulated market. He goes on to say that in his opinion the Bitcoin market is a “total scam”, dominated by exchanges that show a transaction volume that they do not even own and therefore a massive pump and dump is pre-programmed.
Bitcoin crashes by 15% in 7 minutes on NO news: a rigged, totally manipulated, whales-controlled market where most transactions (90%) volumes are false as exchanges pretend to have liquidity they don't have. Massive pump & dump, spoofing, front running, wash trading! Total Scam!
— Nouriel Roubini (@Nouriel) May 10, 2020
Peter Schiff, another well-known Bitcoin critic, describes how, in his opinion, some Bitcoin speculators could not wait in great anticipation for a rising price in anticipation of the Bitcoin halving and have already liquidated their positions prematurely.
The Altcoin market follows the current market trend of Bitcoin, so that ETH also fell by -1.48% to $187.37, XRP by -3.25% to $0.19 and Litecoin by -2.49% to $41.53. The correlation between the price development of Bitcoin and the Altcoins thus remains extremely high.
Search queries for Bitcoin halving explode
The current hype surrounding the halving is also reflected in the search behaviour of all people on Google. The search queries for “Bitcoin halving” have exploded in recent weeks in the United States but also worldwide. The following diagram from Google Trends shows this development in detail.
Despite or rather as a result of yesterday’s crash, experts in the industry are still not in agreement as to whether the halving rally is already over or whether a bull run will only take place after today’s Bitcoin halving. Various studies have shown that, historically, the consequences of halving only become apparent after 18 to 24 months.