Bitcoin price tumbled by close to $1,500 only two days before the halving event, displaying the trembling confidence in the flagship digital currency. Earlier today, the price of bitcoin plunged by 20%, resulting in huge liquidations across the cryptocurrency market.
Nevertheless, several technical patterns indicate that the firm support around $8,000 will prevent bitcoin from tumbling further down. Major cryptocurrency exchange, OKex, seems to had predicted the current movements of the BTC price action. The crypto exchange firm analyzed the behaviour of the other altcoins pre and post their respective blocks halving.
Similar movements as Bitcoin price action around halving
In the case of Bitcoin Cash, it saw a huge rally that elevated its price by a massive 38 percent as its block rewards halving approached. After a reduction in its roll-out rate, there was a substantial growth in the urge to sell BCH, that kindled a 27 percent price correction.
Likewise, BSV rallied by over 55% ahead of its block rewards halving to reach a high of $227. According to web search volume data, fanfare surrounding BSV dwindled post halving. As a result, BSV entered a correctional stage plummeting by almost 20%.
Sufficient support available for Bitcoin
Over the past 48 hours, the Bitcoin price has plummeted by nearly 20%. The popular digital currency fell from a high of $10,080 to lows of $7,940, which is consequently the exact position where the 200 and 100-day moving averages are.
This key demand barricade seems to have been successful in halting BTC from the further drop. In fact, this support level resisted Bitcoin price, shifting it back above $8,600.
On an alternative view, the rejection seems to have emerged from the lower boundary of a mounting parallel channel where bitcoin has been held since the mid-March crypto market collapse. Since the Market crash on March 12, every time Bitcoin shifts to the upper boundary of the channel, it drops down reaching the lower boundary. From this level, BTC surges once again.
The recent drop seen by BTC was triggered by a huge amount of long positions that were liquidated. According to Datamish, on Bitmex alone more than $246.5 million was liquidated for the traders betting on an upswing.