Kryptos slip down
The volatility is showing its bad side on Sunday. Shortly after midnight the bears took over the market and pushed Bitcoin below the USD 9000 mark. A few hours before the halving, the nervous mood of the crypto community is literally tangible. We take a look at the most important events.
Bitcoin with enormous losses
At the time of this article, the BTC price is USD 8529. This corresponds to a daily loss of a whopping 12.35 %. In the meantime, the No.1 crypto currency dipped even further down. Around 2 a.m. the price collapsed abruptly. Within 30 minutes, a loss of a whopping 10 % was recorded, and on some exchanges the BTC even dumped below the USD 8,000 mark.
Liquidations in the three-digit million range
The enormous price slump was accompanied by liquidations worth millions on many stock exchanges. According to this, long positions on Bitmex worth over 200 million USD were liquidated. This shows once again how volatile the crypto space is. For days, Bitcoin fluctuated between USD 9500 and USD 10000. Within minutes, the starting point for the upcoming halving event was drastically changed.
Final phase before halving
From a bullish perspective, the enormous price slump comes at a very bad time. FUD (fear, uncertainty and doubt) and panic selling could hit a highly volatile market and pull Bitcoin way down. Millions in liquidations and BTC sales by miners could even aggravate the problem. The coming hours are seen as an important signpost. Due to the high correlation to the traditional markets, the focus on Monday should be on the major stock indices.
Where do we go from here?
The bears are pushing the price and investors are focusing their attention on the trend line at USD 8400. This is the next largest support level. Further down, we are approaching the 200-day moving average at the $8000 level. Should the bulls make a comeback at the start of the week, the next resistances are at 8600 USD, 8800 USD and 9000 USD. A 24-hour volume of around USD 61 billion underlines the great interest of investors.
Bitcoin Dominance Index at 66.9
Due to the upcoming Halving Event, the alternative assets will be pushed further and further into the background. With a BTC Dominance Index of 66.9 %, the options for independent price rallies are dwindling enormously. On Sunday, Ethereum (current price: USD 185) slides well below the important USD 200 mark, while Ripple drops below the USD 0.20 mark. It remains questionable whether the Bitcoin dominance will change significantly after the halving.
Cryptos break in, Coinbase goes offline
The crypto exchange Coinbase went offline on Sunday at the height of the price drop. For many users such failures are a huge debacle as they lose control over their positions. Numerous complaints were subsequently circulated on Twitter.
Price slumps in the double-digit percentage range, liquidations worth millions and stock market problems do not exactly inspire confidence among users. The crypto-space is and remains a highly speculative patch where whale movements, FUD and Fomo are part of it. If a new phase is initiated on Tuesday night with the third halving event, many scenarios could arise. One thing is certain, there should be no lack of excitement.