The celebration of Bitcoin bulls for bringing the price above ,000 was nothing but shortlived as the leading cryptocurrency collapsed to ,500 in less than five minutes.Bitcoin Nosedives to ,600 on BitMEXThose who have been involved in the cryptocurrency field long enough probably know that there’s rarely a dull day with Bitcoin.In today’s early hours, the leading cryptocurrency broke the coveted ,000 level to reach as high as ,500, shattering essential resistance levels on the way up. Following that, it settled for a few hours around ,100, causing many to believe that it’s preparing for yet another leg up.This, unfortunately, was not the case. Just now, in a violent red 5-minute candle, Bitcoin lost a significant chunk of its value, dropping to as low as ,600 on BitMEX,
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The celebration of Bitcoin bulls for bringing the price above $10,000 was nothing but shortlived as the leading cryptocurrency collapsed to $8,500 in less than five minutes.
Bitcoin Nosedives to $8,600 on BitMEX
Those who have been involved in the cryptocurrency field long enough probably know that there’s rarely a dull day with Bitcoin.
In today’s early hours, the leading cryptocurrency broke the coveted $10,000 level to reach as high as $10,500, shattering essential resistance levels on the way up. Following that, it settled for a few hours around $10,100, causing many to believe that it’s preparing for yet another leg up.
This, unfortunately, was not the case. Just now, in a violent red 5-minute candle, Bitcoin lost a significant chunk of its value, dropping to as low as $8,600 on BitMEX, completing a textbook Bart trading pattern.
As seen in the chart above, the price has since settled at around $9,500. It’s worth noting that this candle wasn’t as violent on other exchanges.
Even though the drop was considerable altogether, on Binance, the price plunged to $9,400. In any case, with the recent developments, Bitcoin is once again below the crucial descending trend-line at around $9,700 and $9,750. To resume its rally, the price would have to overcome this important resistance first. And then, of course, comes the coveted $10,000 mark, which seems to be a serious challenge for the cryptocurrency.
Altcoins Dragged Down
As it’s almost always the case, altcoins were also decimated in the process. Most of them were recording considerable 24-hour gains, but now the picture has changed entirely.
As seen in the above image, Ethereum lost about $16, which is about 7% less than what it was trading at minutes ago. The same is true for all the other large-cap cryptocurrencies, all of which lost a considerable amount.
The best indicator is perhaps the total market capitalization itself, which lost about $14 billion during the sudden drop.