Tuesday , May 18 2021

What triggered a sharp decline in Bitcoin prices?




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Bitcoin fell below $ 5,400 today, reaching the lowest since the end of 2017. & Nbsp; Credit: Getti Roialti FreeGetti

Bitcoin prices have fallen significantly today, falling below $ 5,400 and reaching the lowest level since the end of last year.

The digital currency dropped to just $ 5,390.12, lost more than 10% in a 24-hour period, and at a low speed from 2018, Price data CoinDesk reveals.

This downturn occurred as a result of the crypto-loss market suffered significant losses, falling from a total value of $ 210 billion earlier in the day to nearly $ 180 billion for approximately 15:30 UTC (approximately 10:30 pm ET), according to CoinMarketCap.

When explaining what caused a sharp fall in battle prices, analysts generally pointed to technical analysis or uncertainty about the upcoming hard form in bitcoin cash.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin Cash Hard Fork FUD

Several analysts emphasized the uncertainty surrounding the hard fork expected in bitcoin cash, currently the fourth largest digital currency by market capitalization at CoinMarketCap.

Craig Vright & nbsp; Roger Ver, both major advocates of bitcoin cash, began to advocate for two different versions of the digital currency. & Nbsp;

"The final result is likely to be split into a network that will result in two different versions of Bitcoin Cash when both upgrades come into force this Thursday," said Mati Greenspan, a senior market analyst at the Social Trade Platform eToro, said Business Insider.

"There is a huge amount of FUD that surrounds Bitcoin Cash hard fork," said & nbsp;Joshua Frank, co-founder of the cryptocurrence analytic platform & nbsp;TheTIE.io.

"There seems to be a lot of confusion on the market about what the price of a ride and which will appear as a winner in the BCHABC vs. BCHSV fight," he added. Frank said:

We saw this FUD and confusion in Twitter. This is reflected in the fact that Bitcoin Cash had a volatility of the sender three times that of any other major cryptocentric over the past 24 hours, and BCH's tweeter volume is 217% higher than its average of 20 days.

With the uncertainty that the crypt traders showed on Twitter, and the short-term and long-term mood of Bitcoin Cash remain negative. It will be interesting to see how the feelings of BCHABC against BCHSV, as well as the adoption of miners, are played in the next 48 hours. We anticipate that this has a strong impact on future price movements.

Technical achievements

Although Frank emphasized the feeling, other analysts pointed to market factors when they explained the sharp decline of battles.

"As far as I can tell, this move is technically in its nature," Greenspan said.

Eric Ervin, Company Director & nbsp;Blockforce Capital, offered a similar perspective, stating that "the recent drop in prices is the cause of purely technical moves."

"The significance of the $ 6,000 support level should not be ignored. As the bear market has been trying over the past few months, this level is stable," he noted.

As a result, "many investors came to see it as stop-loss, which would explain the large amount of liquidations that had taken place."

"Looking ahead, today's price decline can be a blessing for the property, because it could move the market to the bottom, after which it can be canceled," Ervin added.

Dual headvinds

Although some analysts have decided to point out the uncertainty that surrounds the bitkoin ready fork or instead of the technical analysis, others have argued that market price fluctuations are the result of both.

Team Enneking, & nbsp;Director General & nbsp;Digital Capital Management, he was in this camp. & nbsp;

"The markets were incredibly soft and the BCH fork simply provided a drop-down catalyst that had been waiting for some time to happen," he said.

Joe DiPaskuale, General Manager of the Cryptographic Fund of Hedge Funds & nbsp;BitBull Capital, gave a similar point of view.

"Today's sharp decline in Bitcoin prices is the result of a bitkeys' final dispute (upcoming fires) and increased pressure at a price of 6 kilograms."

He noted that "Over the past few months, this price has been tested several times, and it has been refusing to do so, but at a lower and lower heights."

"While many saw the 6K price refusal as a support, BitBull claimed that the more the price is 6K, the more likely it will break."

DiPaskuale emphasized that, as market participants aim to expand FUD, it is a catalyst for sale. & Nbsp;

As a result, many traders can simply "adopt the wait and see" until things calm down, he concluded.

Disclosure: I own bitkoin, bitkoin cash and ether.

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Bitcoin fell below $ 5,400 today, reaching the lowest since the end of 2017. Credit: Getti Roialti FreeGetti

Bitcoin prices fell significantly today, falling below $ 5,400 and reaching the lowest level since the end of last year.

The digital currency dropped to just $ 5,390.12, lost more than 10% within 24 hours and hit the 2018 low data price of CoinDesk.

This downturn has occurred as the cryptoid market has also suffered significant losses, falling from a total value of $ 210 billion earlier in the day to nearly $ 180 billion for approximately 15:30 UTC (approximately 10:30 pm ET), according to CoinMarketCap .

When explaining what caused a sharp fall in battle prices, analysts generally pointed to technical analysis or uncertainty about the upcoming hard form in bitcoin cash.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin Cash Hard Fork FUD

Several analysts emphasized the uncertainty surrounding the hard fork expected in bitcoin cash, currently the fourth largest digital currency by market capitalization at CoinMarketCap.

Craig Vright and Roger Ver, both major advocates of bitcoin cash, have begun to advocate for two different versions of the digital currency.

"The end result will likely be split into a network, which would result in two different versions of Bitcoin Cash when both upgrades come into force this Thursday," said Mati Greenspan, Senior Market Analyst at the eToro Social Trade Platform for Business Insider.

"There is a huge amount of FUD surrounding Bitcoin Cash hard villas," he said Joshua Frank, co-founder of the cryptocurrence analytic platform TheTIE.io.

"There seems to be a lot of confusion on the market about what the price of a ride and which will appear as a winner in the BCHABC vs. BCHSV fight," he added. Frank said:

We saw this FUD and confusion in Twitter. This is reflected in the fact that Bitcoin Cash had a volatility of the sender three times that of any other major cryptocentric over the past 24 hours, and BCH's tweeter volume is 217% higher than its average of 20 days.

With the uncertainty that the crypt traders showed on Twitter, and the short-term and long-term mood of Bitcoin Cash remain negative. It will be interesting to see how the feelings of BCHABC against BCHSV, as well as the adoption of miners, are played in the next 48 hours. We anticipate that this has a strong impact on future price movements.

Technical achievements

Although Frank emphasized the feeling, other analysts pointed to market factors when they explained the sharp decline of battles.

"As far as I can tell, this move is technical in nature," Greenspan said.

Eric Ervin, Executive Director Blockforce Capital offered a similar perspective, stating that "the recent drop in prices has entirely caused purely technical moves."

"The significance of the $ 6,000 support level should not be ignored. As the bear market has been working in the past few months, that level is stable," he said.

As a result, "many investors came to see it stop-loss, which would explain the large amount of liquidations that had occurred."

"Looking ahead, today's price decline can be a blessing for the property, because it could move the market to the bottom, after which it can be canceled," Ervin added.

Dual headvinds

Although some analysts have decided to point out the uncertainty that surrounds the bitkoin ready fork or instead of the technical analysis, others have argued that market price fluctuations are the result of both.

Team Enneking, Director General of Digital Capital Management, was in this camp.

"The markets are incredibly soft and the BCH fork simply provided the catalyst for a drop that has been waiting for some time to happen," he said.

Joe DiPaskuale, director of the cryptographic fund of hedge funds BitBull Capital, has provided a similar point of view.

"Today's sharp fall in Bitkoin's price is the result of Bitkoin Cash dispute (upcoming fork) and increased pressure at a price of $ 6K."

He remarked: "Over the past few months, this price has been tested several times and has been rejected above it, but at a lower and lower heights."

"While many saw the cancellation of $ 6K as a support, at BitBull we argued that the more tested the price of $ 6K, the more likely it will break."

DiPaskuale emphasized that, since market participants aim to expand FUD, it represents a catalyst for sale.

As a result, many traders can simply "adopt an approach and wait" until things are settled, he concluded.

Disclosure: I own bitkoin, bitkoin cash and ether.


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