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Bitcoin Price Crash

Bitcoin Price Tumbles by 20% Just Days before Key Halving Event

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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.

Bitcoin price

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.

Bitcoin’s Price Crash Can Be Attributed To Institutional Investors, Claims Report

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Bitcoin’s price movement has been the town’s talk for the past few weeks, especially after its value had dropped by more than 35%. While most of the industry was trying to stay afloat during the Coronavirus pandemic, some new information has come to light about the recent Bitcoin price crash.

According to a report published by Chainalysis, institutional and professional investors were the main reasons for the Bitcoin price crash. This was different from the belief that retail investors were to blame for the market dip. 

Bitcoin price crash by almost 40 percent over the past two weeks and the dip had resulted in an investor rout. For an industry that has been anticipating the arrival of institutional money, the overturn in the capital was an unexpected twist.

Chainalysis found out that the bitcoin transfers between 10 BTC and 1,000 BTC constituted almost 70 percent of all transactions to crypto exchanges.

During the trading time between March 12 and March 13, cryptocurrency exchanges saw an unprecedented rise in trading volume. During a typical trading day in March, exchanges witnessed trades of around 319,000 BTC but that multiplied by 9x on March 13.

Experts claimed that the sell-off was because of the worldwide Coronavirus scare. According to the report:

“These trends suggest that the deeper pocketed professional traders and investors were driving the market, but they were joined, both on the selling and the buying, by a large number of retail holders.”

During the aforementioned date, almost 10 percent of all Bitcoin transfers were over 10,000 BTC. Bitcoin crashed along with its counterparts such as the Nasdaq and the S&P 500. The mainstream stocks and crude oil had sunk to 25 year lows and investors were in deep despair.

Bitcoin price crash came as a surprise to many because it went against the concept of a ‘safe haven’ asset.

At the time of writing, Bitcoin was trading for $5,980.82 with a total market cap of  $109.31billion. A surprising 13.11 percent increase in its price had also lifted the 24-hour market volume to $50.47 billion.