Dump on Thursday
It’s an instructive Thursday… After the brilliant bull run of the previous days, the bulls have to put up with a bitter defeat, while the spectre of panic forces insecure investors to sell off quickly. Other investors had previously taken advantage of the opportunity to realize their own profits. The chain reaction is accelerated by the high volatility and in the end the alternative assets suffer the greatest damage. We take a look at the chaotic events on the crypto market.
Bitcoin falls below the 17000 USD mark
At the time of this article, the No.1 crypto currency is at a rate of 16540 USD, which is a daily loss of 13.70%. According to this, the bears take over the command with a real bang. At the same time, a 24 hour volume of 56.4 billion USD implies the enormous interest of investors. The panic is back and many investors are struggling with the well-known FUD (fear, uncertainty and doubt). But how far will the BTC price fall south?
Support and resistance
From a bullish perspective, the new resistances after the mega-dump are at USD 16600 and USD 17000. In a first recovery attempt, the bulls had to take a heavy rebound at the 17 k barrier. On the other hand, the next supports on the downside are at USD 16400 and USD 16000. Due to the high volatility and strong whale movements, several support lines have been breached in the past hours. The “digital gold” is looking for a bottom and the dump could be even more violent. In order to get an idea of the possible consequences, it is sufficient to look in the direction of Altcoins. They are experiencing a real earthquake on Thursday.
Bloodbath for the alternative assets
The Altcoins experience a pitch-black day with heavy price drops. While Ethereum (- 14.32 %) finds support in the important USD 500 mark, Ripple rattles down – 30.73 %. Countless Altcoins have to cope with price losses of over 20% on Thursday. This suddenly dampens the euphoria of the previous days. The volatility is showing its worst side and the FUD is causing panic selling.
Correction or the beginning of a downtrend?
For many experts, the current downtrend is probably an overdue correction. With the lifting of the payout stop on the crypto stock exchange OKEX, Asian miners were able to swap large BTC amounts for FIAT on Thursday to cover their expenses. Quite a few experts see in this the trigger for the downward trend. In just a few hours, investors withdrew over USD 80 billion from the market, almost a seventh of the total market capitalization. Just in time for Thanksgiving, the trend-setting showdown at the USD 17000 barrier is now taking place.