Within hours of yesterday’s analysis, Bitcoin bulls were forced to release their grip on the USD 13,000 price levels as North American traders flooded in to snap up easy profits.
Profit taking could not have been a tough decision to make, when entry points of USD 11,000 and below just days ago meant that short-term speculators and weekly traders could book and easy 15% or more profits, knowing that a return to these levels should be easy, given the demand for Bitcoin.
The world’s most-traded digital asset has not seen demand dipping very much after the series of crops in the past 24 hours, beginning with a slip from the daily high of USD 13,175 around 1:55 pm UTC to USD 12,464 in an hour. By the time late afternoon approached in North America, sellers had further dragged down the price to USD 11,680, before Japanese and Chinese traders attempted to retake ground at USD 12,000 — successfully at first but then foiled towards noon China time when further falls brought a current low of USD 11,202.
As London settles into coffee and croissants, Bitcoin does appear to be somewhat stable at around USD 11,447 (10:00 am UTC, CoinDesk) after shedding 11% of its price in a day.
The key to where the rest of the week heads to now lies with how those who entered the market at the last flash crash will do. Many bought in at around the USD 10,500 range and will be pressured to take a quick profit now to still stay ahead in case Bitcoin looks for further floors. However, they may be tempted to take their chances and put in tight stops closer to USD 11,000, while upping a target to above USD 12,000, safely away from the critical resistance at USD 13,000.
If altcoins traders were complaining about the lack of growth in the withering heat of Bitcoin’s resurgence, then they will for sure be feeling miserable in the aftermath of the past day’s performance. A sea of red charts fills the expanse, with not a single coin — not even Tether — in the Top 30 by market capitalization (CoinMarketCap) safe from the scourge of crypto bears.
QTUM, EOS and BCH lead the losers, giving up 20% of their value overnight, while DASH and BTG managed to prevent double digit percentage losses, albeit just barely at 9% plus.
Incredibly, Bitcoin dominance has continued to grow amid its current collapse, and holds a steady sway over altcoins at 65.5% dominance.
Analysts are still struggling to pick up the pieces and pinpoint a cause to the day’s fall. The US dollar took a slight battering over the euro when Federal Reserve Chair Jerome Powell‘s testimony yesterday opened the door even wider to a rate cut for the central bank. But since that was already expected by most, then it was more likely his comments against Facebook’s crypto project Libra that would have impacted Bitcoin price. Over the entire course of his speech, Bitcoin’s price took its first plunge and continued to decline.
In his semi-annual testimony — three hours long — on monetary policy before the US House of Representatives Financial Services Committee, Powell insisted that Libra “cannot go forward” until it was able to address “serious concerns”. He stated:
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability… It’s [digital currencies] something that doesn’t fit neatly or easily within our regulatory scheme but it does have potentially systemic scale. It needs a careful look, so I strongly believe we all need to be taking our time with this. The process of addressing these concerns should be a patient and careful one, not a sprint.”
Mark Yusko, founder of Morgan Creek Capital Management, however, is among those unperturbed by short term news and repeatedly says that new all time highs are only a matter of time for Bitcoin. He told CNBC’s Fast Money:
“We’re definitely going to reclaim all-time highs… It’s the best performing asset class this year… I think we’re in the next parabolic move that will take us probably into the USD 30,000 level before we get another correction.”
Other analysts also point out that this short term range of cycles are a part and parcel of Bitcoin’s upwards trajectory, with investor psychology at play each and every week. CCN’s Lawrence Meyers says simply that Bitcoin also has to respect “a fundamental rule in physics” in which “what goes up must come down”. He says that people should trade like whales and look back to history where this pattern has repeated itself time and again.
Whatever the scenario for the near term, interest in Bitcoin is not going away, and as Binance finally made its much-anticipated margin trading available today, it also recorded over USD 1 billion in Tether inflow, even as price ebbed lower. Not that that has helped BNB price!
【Binance Records A Whopping $1 Billion Inflow In USDT As Bitcoin Price Trickles Down】Binance, one of the world's largest exchanges, witnessed a massive inflow of USDT as much as a billion doll…https://t.co/sPs7Voukxu
— Trần Anh Thái (@anhthai8790) July 11, 2019
Image Courtesy: Unsplash
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