Bitcoin price collapses
Minus 1000 USD in less than 60 minutes! These figures illustrate that volatility is having an increasing influence on Bitcoin. A turbulent Thursday is coming to an end. We take a look at the most important events
BTC course in detail
At the time of this article, the BTC price is USD 9554. This represents a 24-hour loss of just under 6%. In the morning, the No.1 crypto currency even fell below the 9300 USD range on some stock exchanges. Meanwhile, the total market capitalisation is around USD 275 billion, of which around USD 174 billion is invested in BTC. This corresponds to a BTC Dominance Index of 63.1 %.
Volatility is back
Volatility is returning and prices are reacting with sharp fluctuations. After the Bitcoin recorded an upward trend of over 700 USD on Wednesday, the tide turned in favor of the bulls on Thursday. On the one hand, volatile chart developments lure risk-affine traders into the cryptospace, on the other hand, reasonable price analyses are becoming increasingly difficult.
Why did the flash crash occur?
The exact reasons for the sudden price collapse are still unclear. Unscheduled maintenance work on Binance was a real treat for friends of the FUD (fear, uncertainty and doubt). Reports of a hack attack quickly spread and some investors trembled for their coins. However, these reports were probably not enough to cause the extreme price slump. A possible whale movement or an overdue price correction, which was accelerated by the volatility, seems more plausible.
Golden Cross-Hype fizzles out
The Golden Cross on Wednesday generated an amazing uptrend of over $700. The Golden Cross describes a chart situation where the 50-day line (MA 50 ) and the 200-day line (MA 200) cross in a certain constellation (the MA 50 comes from below in this case). The opposite would be a so-called “Death Cross”, which is a bearish indicator. The Golden Cross, on the other hand, triggered a real hype in the crypto-community, which suddenly evaporated on Thursday.
10000 USD limit
The ups and downs at the psychological $10000 mark imply that the resistance and support areas around the magic boundary are getting smaller. The hurdle into the five-digit range is permeable and a quick Bitcoin comeback would not be a surprise.
Forecasts are difficult
Until today no trader is in possession of the famous crystal ball and exact Bitcoin forecasts are a thing of the impossibility. This is because the “digital gold” is influenced by countless factors. The crypto space is a complex area where whales, SCAM’s, FOMO and FUD cavort. Bullish price forecasts can turn in no time at all, panic and negative headlines do not change the fundamentals, but these factors have a significant impact on volatile crypto currencies with low market caps.
A used day for the Altcoins. The Bitcoin dump has a negative impact on the alternative assets and causes enormous price drops. Ethereum dips with a daily loss of just under 10% to a price of around USD 254. Ripple, Litecoin, Bitcoin Cash and EOS are hit even harder with losses in the double-digit percentage range. Algrorand is the only exception in the Top 50 with an upward trend of about 11 %.