Bitcoin has declined sharply this week, losing over 5% in under 24 hours and causing traders to nervously eye the psychological $10,000 per bitcoin level.
The bitcoin price lost $1,000 in a matter of hours, falling under $11,000 per bitcoin on Thursday morning with the U.S. stock market posting its biggest sell-off since June by the close of play as stocks retreated from all-time highs, led lower by tech giants.
Bitcoin and cryptocurrency market watchers, who have enjoyed a prolonged bull market since the March coronavirus crash, are now focused on the $10,000 line, with a bitcoin futures trading gap set in late July still open just below it.
The bitcoin price lost almost $1,000 per bitcoin in under 24 hours, sparking fears among bitcoin and ... [+] cryptocurrency traders of a wider sell-off.
Bitcoin's 2020 bull market, which has seen the bitcoin price surge from around $4,000 to $12,000, could be brought to an abrupt end if the price moves lower than $10,000 per bitcoin.
"Moving forward, it is important to keep an eye on the last zone of defense between $10,000 and $10,500," Joe DiPasquale, the chief executive of San Francisco-based bitcoin and crypto hedge fund BitBull Capital, said via email. "As long as this range is respected, bitcoin is unlikely to see a prolonged bearish spell."
The bitcoin price fell as low as $10,455 per bitcoin on the Luxembourg-based Bitstamp exchange on Thursday before somewhat rebounding.
The open trading gap, set on July 27, saw bitcoin futures on the Chicago Mercantile Exchange (CME) open higher after the weekend close, something some analysts think causes a disconnect with the underlying market and appears to have set bitcoin on its path to recent highs of around $12,000. Technical analysis shows that 90% of such trading gaps are eventually closed, with the price sooner-or-later retracing back to the gap.
Elsewhere, bitcoin and cryptocurrency exchange data suggests there could still be "sell pressure to work through," according to Philip Gradwell, chief economist at blockchain intelligence firm Chainalysis.
"Bitcoin inflows to exchanges were 92,000 yesterday, highest in 37 days, as people rushed to sell at near $12,000 prices of September 1," Gradwell said via Twitter. "Trade intensity, how many times the inflowing bitcoin was traded, is low, suggesting there were not many buyers to match the sellers."
Meanwhile, bitcoin miners, those who secure the cryptocurrency's network in return for bitcoin rewards, "are moving unusually large amounts of bitcoin," according to analysts at data provider CryptoQuant, suggesting miners are looking to cash out their bitcoin rewards.
"The big level that everyone is watching is $10,000," Mati Greenspan, the founder of Quantum Economics, wrote in his popular daily newsletter, pointing to a U.S. dollar comeback as the reason for the recent move lower.
"The crypto market has broken a few psychological levels. When we broke above that level in late July, it was with such force that we never really got to test it as support. Well, this may just be our chance," Greenspan wrote, adding, "if things get really bad we may just get another chance to buy bitcoin below $10,000."
The bitcoin price has lost almost 6% over the last 24-hour trading period, with the bitcoin market ... [+] capitalization falling under $200 billion.
However, many in the bitcoin and cryptocurrency community remain upbeat despite the recent bitcoin price fall.
"$10,000 is the new $1,000," Charles Hayter, chief executive of bitcoin and cryptocurrency analytics platform CryptoCompare, said via email, adding: "2020 has seen leaps and bounds in terms of infrastructure, regulation and resilience across the ecosystem as it has evolved over the last three years."
The current bitcoin market is "similar to the first half of 2017," according to Hayter, who thinks "the perpetual dilution of fiat currencies is being challenged by bitcoins hard code cap" of 21 million bitcoin tokens.
Bitcoin, along with the wider cryptocurrency market and global stock markets, has been boosted this year by massive stimulus measures and unprecedented money printing that's carried out by the world's central banks, led by the U.S. Federal Reserve, in order to offset the economic damage wrought by the coronavirus pandemic.
"For most of 2020, short-term bitcoin price moves have been highly correlated to U.S. stocks," Cory Klippsten, the chief executive of bitcoin buying app Swan Bitcoin, said via Telegram, adding he expects "any dips under $10,000 to be bought up voraciously."
"Bitcoin has proven to be uncorrelated over the longer term. At a minimum it is a hedge against fiat inflation, but it also functions as a call option on a new global monetary system."
View original post here:
- Bitcoin Rally Attracts Wave Of Private Investment As Leading Blockchain VC Raises New $120 Million Fund - Forbes - December 26th, 2020
- Bitcoins Rally Has Already Outlasted 2017s Epic Run - The Wall Street Journal - December 26th, 2020
- Here's Why I Won't Buy Bitcoin, and You Shouldn't, Either - Motley Fool - December 26th, 2020
- The price of bitcoin is 'driven by manipulation': Nouriel Roubini - Yahoo Finance - December 26th, 2020
- Bitcoin To 27K Projection? - Yahoo Finance - December 26th, 2020
- Bitcoin And Crypto Trading Tips From Poker World Champion Annie Duke - Forbes - December 26th, 2020
- Mark Zuckerberg has another answer to Bitcoin - The Japan Times - December 26th, 2020
- An Unknown User Incurs More Than $80,000 in Transaction Fees When Sending BTC Worth $1 | Blockchain - Bitcoin News - December 26th, 2020
- Tokenized Bitcoin on Ethereum Now Tops $1.1 B: Here's Why - CoinDesk - Coindesk - September 25th, 2020
- 3 reasons why traders turned bullish after Bitcoin price surged to $10.7K - Cointelegraph - September 25th, 2020
- First Mover: Bitcoins Hit Exchanges as Bloomberg Touts Crypto and DeFi Hedge Fund Seeks $50M - CoinDesk - September 25th, 2020
- BitGo Is Bringing DeFi-Friendly Wrapped Bitcoin to the Tron Blockchain - CoinDesk - Coindesk - September 25th, 2020
- Keiser Insists 'Bitcoin Inversely Correlated To USD Not Stock Markets' After Crypto Market Tumble | Markets and Prices - Bitcoin News - September 25th, 2020
- Profit taking Bitcoin miners wont stop the next bull run: On-chain analyst - Cointelegraph - September 25th, 2020
- The Winklevosses have launched their bitcoin exchange in the UK - Wired.co.uk - September 25th, 2020
- Christies to sell its first non-fungible-token as part of epic Bitcoin artwork - Cointelegraph - September 25th, 2020
- Bitcoin-related ads are now streaming on Disney+ in some regions thanks to Zebpay - Cointelegraph - September 25th, 2020
- Cryptocurrency ETF by Nasdaq and Hashdex Approved to List on Bermuda Stock Exchange | Regulation - Bitcoin News - September 25th, 2020
- XSwap Started Yield Farming, The Highest APY Reaches 70,000% | Press release - Bitcoin News - September 25th, 2020
- Bitcoin sentiment at record lows Does it mean the price will go up? - Cointelegraph - September 18th, 2020
- Its a bull trap! 3 key metrics forecast Bitcoin price rejection at $11K - Cointelegraph - September 18th, 2020
- Bit Digital, Inc. Announced Officially to Cooperate with the World's Leading Bitcoin Colocation Partner In US - PRNewswire - September 18th, 2020
- How Bitcoin Correlations Drive the Narrative - CoinDesk - CoinDesk - September 18th, 2020
- Bitcoin hardware devices need to improve to handle complex transactions - Cointelegraph - September 18th, 2020
- First Mover: Bitcoin Investors the Sane Ones as Federal Reserve Cheers Inflation, Price Nears $11K - CoinDesk - CoinDesk - September 18th, 2020
- Why We Get Obsessed With Bitcoin - Decrypt - September 18th, 2020
- Tevoro.com Announces New Book Revealing What's Missing from Bitcoin, Ethereum and Other Cryptocurrencies - PRNewswire - September 18th, 2020
- Bank of England talks negative interest rates in best ad for Bitcoin - Cointelegraph - September 18th, 2020
- Fed, oil and record hash rate: 5 things to know in Bitcoin this week - Cointelegraph - September 18th, 2020
- Glen Oaks Escrow Announces It Assisted With Yet Another Bitcoin Transaction - PRNewswire - September 18th, 2020
- India's Crypto Bill Omitted From Parliament Agenda While New Ban Report Appears - Bitcoin News - September 18th, 2020
- First Mover: As Bitcoin Falls for Second Day, Long-Term Holders Probably Won't Care - CoinDesk - CoinDesk - September 5th, 2020
- Can You Have Your Bitcoin And Eat It Too? - Forbes - September 5th, 2020
- A Radical New Crypto Just Blew Past The Bitcoin Price All-Time HighUp A Shocking 3,500% In Just One Month - Forbes - September 5th, 2020
- First Mover: Buying Bitcoin's Dip, Betting Against Tether and Weighing the Jobs Report - CoinDesk - CoinDesk - September 5th, 2020
- Private Capital And Institutions Are Piling Into Bitcoin And Other Digital Assets But You Need To Know Where To Look - Forbes - September 5th, 2020
- Ethereum Soars 10% Overnight Implications For Bitcoin - Forbes - September 5th, 2020
- Bitcoin Down Almost 10% Today, You'll Be Surprised to Hear What's Next - FX Empire - September 5th, 2020
- So Far, a Nice Rise But Not a Wild Runup for Bitcoin Since the May Halving Event - Digital Transactions - September 5th, 2020
- Bitcoin Will Be Accepted for Tax Payments in Swiss Canton Zug Next Year | Taxes - Bitcoin News - September 5th, 2020
- The History of Bitcoin - WTOP - September 5th, 2020
- Wasabi Wallet Patches Flaw That Could Have Thwarted Bitcoin Privacy Feature - CoinDesk - Coindesk - September 5th, 2020
- Why Fusion's DCRM is The Best Option for DeFi Users | Sponsored Bitcoin News - Bitcoin News - September 5th, 2020
- Bitcoin Will Break Out This Year, Says Devere CEO | News - Bitcoin News - September 5th, 2020
- Tax Implications For Donations Of Bitcoin - Forbes - September 5th, 2020
- Protection Over Profit: What Early Mining Patterns Suggest About Bitcoins Inventor - CoinDesk - CoinDesk - September 5th, 2020
- Research: New Malware Employs Tor and Bittorrent To Steal Bitcoin and Ether | Security - Bitcoin News - September 5th, 2020
- Will Bitcoin Dump If Stocks Have Another COVID-19-Scale Crash? - Forbes - September 5th, 2020
- Elon Musk Confirms Serious Russian Bitcoin Ransomware Attack On Tesla, Foiled By The FBI - Forbes - September 5th, 2020
- 3rd Bitcoin SV Hackathon Finalists announced to compete for USD $100,000 - PRNewswire - September 5th, 2020
- Max Keiser thinks Warren Buffett will move to Bitcoin soon - Cointelegraph - September 5th, 2020
- Major Swiss Insurer Adds Bitcoin and Ether Payments | News - Bitcoin News - September 5th, 2020
- Warren Buffett Shifts Funds From US Amid Inflation Fears, Bitcoin's New All-Time High Expected | News - Bitcoin News - September 5th, 2020
- No interim injunction over bitcoin account where damages would be adequate - Lexology - September 5th, 2020
- Venezuela's Bitcoin Use Soars Amid Hyperinflation: 3rd on Global Crypto Adoption Index | News - Bitcoin News - September 5th, 2020
- Bitcoin market index back to fear on 91st anniversary of 1929 crash - Cointelegraph - September 4th, 2020
- China Is No Threat To Bitcoin, Promises Foundry CEO After $100 Million Bitcoin Mining Bet - Forbes - September 4th, 2020
- 3.5 Million+ Crypto Wallets Downloaded in July, Active Users up 110% in the Year | Wallets - Bitcoin News - September 4th, 2020
- Here Are The Key Levels To Watch In Bitcoin - Forbes - September 4th, 2020
- Ethereum Is Eating Bitcoin - Forbes - September 2nd, 2020
- Bitcoin Rally Fails After Breaking Through $12,000 - Forbes - September 2nd, 2020
- Fidelity Is A 1,000 Pound Bitcoin Gorilla In The Making - Forbes - September 2nd, 2020
- Is Bitcoin About to Explode? - TheStreet - September 2nd, 2020
- Russia Blocks Cryptocurrency Websites Ahead of Regulation | News Bitcoin News - Bitcoin News - September 2nd, 2020
- USD has more room to fall 5 things to watch in Bitcoin this week - Cointelegraph - August 31st, 2020
- Bitcoin In The Early Stages Of A Bull Market, Crypto Wallet Data Reveals - Forbes - August 31st, 2020
- Federal Reserve's Major Policy Shift to 'Push Up Inflation' Could Send Bitcoin Price to $500K - Bitcoin News - August 31st, 2020
- Bitcoin balks as the Fed talks, DeFi surge continues: Weekly recap - Cointelegraph - August 31st, 2020
- $140,000 of North Korean Bitcoin Targeted by DoJ Starts Moving - Decrypt - August 31st, 2020
- Bitcoin 'maximalists' accused of 'shilling' an SEC-cleared token - Cointelegraph - August 31st, 2020
- SEC Redefines Accredited Investors to Include Those With Proven Knowledge | Regulation - Bitcoin News - August 31st, 2020
- First Mover: Binance's Shrinking Trading Spreads and Bitcoin's Jackson Hole Fizzle - CoinDesk - CoinDesk - August 31st, 2020
- Blockchain Bites: What Rising Inflation Could Mean for Bitcoin and the US Dollar - CoinDesk - CoinDesk - August 28th, 2020
- Digital Dollar To Be In Competition With Bitcoin - Forbes - August 28th, 2020
- Fidelity Is A 1000 Pound Bitcoin Gorilla In The Making - Forbes - August 28th, 2020
- Tyler Winklevoss says US Fed is the biggest booster of Bitcoin price - Cointelegraph - August 28th, 2020
- New Binance Exclusive Reveals The Bitcoin Exchange Might Have A Serious Problem - Forbes - August 28th, 2020
- Explanation of the Stock to Flow Model as Bitcoin Pulls Back - Market Insights - TradeStation Market Insights - August 28th, 2020
- Here's Why Bitcoin Is A Must In Your Portfolio - Seeking Alpha - August 28th, 2020
- Market Wrap: Bitcoin Dips to $11.6K, ETH Options Predict Price Below $400 by End of Year - CoinDesk - CoinDesk - August 28th, 2020