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Following a week of consolidation in an ever tightening channel Bitcoin finally made its move today. Many had been predicting it would be to the downside and they were correct as the king of crypto slumped 5% in an hour plunging back into the mid-$9,000 zone.
Monster Red Bitcoin Candle
Just an hour or so ago one huge red candle plunged Bitcoin prices through support at $10,100 and back into four figures. The move culminated in a bottoming at a previous support level at $9,600 but things bounced off this price quickly.
BTC price 1 hour chart – Tradingview.com
The move had been predicted by many analysts who suggested there would be a final phase down to below $9k before any meaningful upside rally can continue. Bitcoin traders were quick off the mark to seek new support levels and predict BTC’s next move. Josh Rager added that there was nothing unexpected about this move but things could turn south below $9,400.
“Not really worried unless price breaks and closes below $9400 again. This is the area to keep an eye on”
Industry observer Richard Heart added that the move has kept things within the large descending triangle formation that has developed since the initial run back in July.
At the time of writing BTC had closed the last hourly candle at around $9,800 so the drop has not been as extreme as it initially looked. A further period of consolidation may well happen at this area before buyers can push the asset back into five figures.
The Bakkt launch next week may provide some bullish momentum but at the moment no new money is entering the markets and it is the same players recycling the same funds.
Bitcoin Dominance Drop
Bitcoin dominance is now back below 70 percent according to Tradingview.com however the altcoins are also starting to slide so yesterday’s big pump was clearly just a blip. The likely scenario is that all of these gains will be wiped out again as BTC dips back into four figures.
Ethereum has dropped back to $205 while XRP is back below $0.30 again as the dump follows the pump for altcoins. The sea of red is intensifying at the moment as all crypto assets blindly follow their big brother like the digital lemmings that they are.
Over the past couple of hours $10 billion has been dumped from total crypto market capitalization which has slid back to $262 billion.
Martin Young
