BItcoin (BTC) Falls Under $4,000 Support On A Dime
After days of stagnating at the $4,200 price level, on Saturday afternoon (EST), Bitcoin (BTC) suddenly fell under $4,000, a highly-touted level of support for the cryptosphere’s foremost asset. It wasn’t clear why this bout of selling pressure occurred, but within minutes, sell-side orders pushed BTC (on Coinbase) under $4,200, then $4,100, then $4,000, all the way to $3,800, where the digital asset is situated at the time of writing.
Although this is worrying, in the short-term, it seems that a temporary floor (of sorts) has been found at $3,800, another key level mentioned by crypto traders incessantly. Again, while many have speculated, it is unclear whether there was a catalyst that triggered this sudden loss of support, sending BTC plummeting into its third freefall in a week’s time.
Still, many believe that this rapid 10% loss can be chalked up to a number of supposed catalysts: the aftermath of the Bitcoin Cash’s November 15th fork, an influx of institutional selling orders, the Bakkt Bitcoin futures vehicle delay, regulation measures from the SEC, and, arguably the most convincing, the final bout of capitulation from crypto’s “weak hands,” so to speak.
Crypto’s leading commentators took to Twitter to comment on this market movement, which comes just a day after Black Friday and in the middle of American Thanksgiving Weekend.
I must admit, I never thought we would see this again.. pic.twitter.com/qnFZiqvYX5
— Ran NeuNer (@cryptomanran) November 24, 2018
Ran NeuNer, counteracting his undying bullishness on this asset class’ prospects, exclaimed that he didn’t expect to see BTC foray under $4,000 ever again, evidently referencing his sentiment that a bull run is around the corner.
Bitfinex dropped it to 4k/USDT right as the premium hit 7%. I guess they may be trying to keep the premium below 7%. pic.twitter.com/4Gaqjxl8AW
— Bitfinex'ed (@Bitfinexed) November 24, 2018
Bitfinex’ed, the de-facto king of crypto critic, cut out some time to tout his anti-Bitfinex sentiment amid the move lower, claiming that it was suspicious that the exchange’s premium hit 7%, just as BTC hit $4,000.
Just setting up my Coinbase alert. pic.twitter.com/xmPYhES5e3
— Steven Zheng🦡 (@Dogetoshi) November 20, 2018
Steven Zheng of The Block retweeted an image he sent in jest, which highlighted an alert for when BTC capitulates under $1.00, a nonsensical price target, hence the joke.
The fact of this most recent move lower is that many believe crypto’s bear market isn’t done yet, or at least not until a bottom of $3,000 is reached, as claimed by many traders, including Tone Vays, Anthony Pompliano, and other lesser-known, yet knowledgeable industry analysts.
Speaking to CoinTelegraph, Pompliano noted that psychological arguments point towards the fact that there hasn’t been enough pain yet, meaning that a true bottom/capitulation phase hasn’t been achieved yet. The Morgan Creek Digital Assets executive, a centralized bank hater, then explained that from a technical standpoint, $3,000 to $4,000 per BTC is a likely possibility.
From a historical perspective, Pomp also explained that a $3,000 price bottom could also be logical, noting that historically, Bitcoin’s drawdowns have been 80%+, before adding that this year’s has ‘only’ been ~75%.
Keeping this in mind, $3,000, or an 85% decline from 2017’s all-time high, could be in Bitcoin’s short-term cards, so to speak. Vays closely echoed this sentiment, explaining that $3,000 is a price point to watch, telling CoinTelegraph viewers that once BTC reaches the $3,000 zone, it would be a good idea to start accumulating.
TItle Image Courtesy of Marco Verch Via Unsplash