The cryptocurrency market has been caught up in a violent downtrend in the past day. In particular, Bitcoin and most major altcoins were sold off sharply, eliminating most of the profits generated in the first months of 2020.
It seems that the selloff initiated by Bitcoin was catalyzed by the massive selling pressure from traders on the margin trading platform.
If selling pressure does not stop in the coming days, it is likely that the market will fall even more in the short term.
Bitcoin leaves the market in a state of mass selling
Bitcoin and the cryptocurrency market reported notable losses today, mainly due to BTC being rejected at $ 9,200, creating strong movement to the established support threshold in the region. over 8,000 dollars.
Currently, Bitcoin is trading around 8.03% down at its current price of $ 8,108, a significant drop from its daily high of $ 9,200.
The massive sell-off has caused many altcoins to plummet, with some types losing up to 20% in value over the past 24 hours.
ETH and XRP both traded down about 12% at current prices of $ 205 and $ 0.2, almost losing all gains made during January and February.
Mohit Sorout – a partner at Bitazu Capital and a well-known analyst – commented on the happenings of the whole market in a recent tweet, explaining that this sell-off usually takes place after days or weeks. unify.
No point in knife catching $ btc
Massive OI-decimating moves are followed by days / weeks of consolidation once price finds a floor.
There'll be plenty of time to position yourself.
Wait for it.
– Mohit Sorout 📈 (@singhsoro) March 8, 2020
"There is no threat to BTC. Big moves of OI usually occur after the day / week of consolidation once prices hit the floor. There is plenty of time to locate yourself. Wait and see. "
The sell-off market is likely to expand when the sell order starts to stack
It seems that the continued sell-off of Bitcoin will expand further in the near future, as cryptocurrencies are seeing constant selling pressure from Bitfinex traders.
Hsaka analyst talked about this selling pressure in a recent tweet, explaining that BTC has faced a “100-million-stop selling order” since the daily market opening.
Finex has been unloading like a gatling gun today.
Non stop 100k market sells since the daily open. This screenshot is just of the past 5 mins. $ BTC pic.twitter.com/6pKkTD0b9o
– Hsaka (@HsakaTrades) March 8, 2020
"Today, Finex sold BTC as a machine gun. Sell non-stop 100K since opening daily ".
Unless this relentless selling pressure eases in the coming hours, it is likely that Bitcoin and the cryptocurrency market will decline significantly in the short term.
March saw the Bitcoin price rise slightly
Bitcoin began its correction on February 20, causing many investors to wait for the $ 10K trade to disappoint. However, prices have gradually increased since the beginning of March, up 2% in the month.
Analyst DonAlt predicts Bitcoin is at a 'crossroads' in the short term, but overall indices still show price movements.
$ BTC update:
So far so good.
Tightened risk a little bit, if the much sought out $ 9500 level hits I think we go higher, not lower.Today's weekly close will be interesting if we close below $ 8750 BTC will have had bearish retests on the monthly, weekly, 3d and daily timeframe. pic.twitter.com/1qZN2iXDti
– DonAlt (@CryptoDonAlt) March 8, 2020
"Updating BTC:
More and more good.
Tighten the risk a bit, if 9,500 are searched a lot I think prices will go up higher rather than lower.
Closing weekly would be very interesting if below $ 8,750, BTC will have discount retests on monthly, weekly, 3-day and daily time frames. "
The highlight of current technical indicators is that the Bitcoin price is much less volatile than it was in February. This type of price consolidation often results in a noticeable move. In addition, market conditions now look similar to previous years, when prices began to increase around March and continue through July.
Besides, the level of interest in altcoins continues to increase, as many investors are taking this opportunity to accumulate. For example, ETH has performed much better than Bitcoin for the past few days, despite a 24-hour adjustment. Therefore, the general sentiment is still very positive.
The secondary factors impact the market
Recent news regarding the use and application is very positive, clearly affecting the market activity. The ruling of the Supreme Court of India in favor of cryptocurrencies and banks caused the price to skyrocket, albeit temporarily. If the verdict is upheld after the expiry of the time limit for petitions, it will have a good long-term impact.
In addition, network activity increased significantly on many blockchain platforms. Bitcoin mining is at an all-time high and the number of transactions moving on the Bitcoin network is also increasing day by day. The overall performance of the blockchain network is much higher than a year ago.
The utilization rate is also increasing in the real world. Ripple now moves more fiat on its network than Paypal and VeChain continues to bring big players into the ecosystem. While cryptocurrencies are still rarely used as a currency, more traders than ever are taking steps to accept it.
Looming over all market analysis is halving Bitcoin imminent. All analysts agree that reducing the supply of Bitcoin will lead to higher prices. It's impossible to know the halving impact on the cryptocurrency space in general, but it's hard to predict downside.
Short-term price recovery is uncertain, so Bitcoin's sideways movement will soon end. A move higher would clearly indicate that the bull market has begun.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Thuy Trang
Bitcoin Magazine
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