Bitcoin Declining Under $10,000 Might Signal that It’s Over
Bitcoin (BTC) has fallen sharply this week. It lost 5% in less than 24 hours. This made traders nervous enough to eye the psychological $10,000 per BTC level.
The Bitcoin price declined as much as $1,000 in a matter of hours, dropping below $11,000 per BTC on Thursday morning. And this is with the U.S. stock market recording its most significant sell-off since June by the close of play while stocks reversed from all-time highs, led lower by tech firms.
Then, Bitcoin and cryptocurrency market watchers recently enjoyed a prolonged bull market since the March coronavirus crash. But now, they are closely watching the $10,000 line, with BTC futures trading gap set in late July still open under it.
The 2020 bull market of Bitcoin has seen its price boost from around $4,000 to $12,000. And this might result in an abrupt end if the price moves under $10,000 per BTC.
San Francisco-based Bitcoin and crypto hedge fund BitCull Capital’s chief executive, Joe DiPasquale, wrote, “Moving forward, it is important to keep an eye on the last zone of defense between $10,000 and $10,500.”
He added that while this range stays respected, Bitcoin is unlikely to see a prolonged bearish spell.
Aside from that, the open trading gap – set on July 27 – saw Bitcoin futures on the Chicago Mercantile Exchange or CME open higher following the weekend close. And this is a thing that analysts believe causes a disconnect with the underlying market. Technical analysis displays that 90% of these trading gaps are eventually closed, with the price sooner-or-later retracing back to the gap.
Market Data
Bitcoin and cryptocurrency exchange data signals a selling pressure to work through, based on chief economist at blockchain intelligence firm Chainalysis, Philip Gradwell.
Gradwell said, “Bitcoin inflows to exchanges were 92,000 yesterday, highest in 37 days, as people rushed to sell at near $12,000 prices of September 1.”
Then, he also noted that the trade intensity is low, meaning there are not many buyers to match the sellers.
For Bitcoin miners, the ones who secure the crypto’s network in return for BTC rewards, are moving surprisingly massive BTC amounts. Data provider CryptoQuant’s analysts are suggesting that miners are looking to cash out their Bitcoin rewards.
Quantum Economics’ founder, Mati Greenspan, explained that everyone has their eyes on the $10,000 price mark. He also pointed to a U.S. dollar comeback being the reason for the recent move lower.
Greenspan also said that the crypto market had broken some psychological levels. When breaking the level in late July, it was with such force that they never got to test as supports. He said, “If things get really bad, we may just get another chance to buy Bitcoin below $10,000.”
Crypto Community
Still, many people on the Bitcoin and cryptocurrency community stay positive even with the recent BTC price fall.
CryptoCompare’s chief executive of BTC and crypto, Charles Hayter, stated that $10,000 is the new $1,000. Also, he said that 2020 had seen leaps and bounds when it comes to infrastructure, regulation, and resilience across the ecosystem as it has changed during the past three years.
