BTC Has Dropped Below $20,000 Once Again

Bitcoin (BTC) fell below $20,000 after Wall Street opened on August 30 due to data showing holders selling at a loss.

Data from Cointelegraph Markets Pro and TradingView documented the latest plunge in Bitcoin/USD below the 2017 bull market peak, with US stocks following suit.

The S&P 500 and Nasdaq Composite Index fell 1.2% and 1.115% in the first hour. Meanwhile, Bitcoin/USD fell 2.41% in a single hourly candle.

The current swings surprised traders who were already concerned about the largest cryptocurrency experiencing a deeper drop. Many had already predicted a regression to the June macro lows.

Bitcoin and Ether (ETH) provided solid prospects for an approaching short trade for popular trader Crypto Ed. In the case of Bitcoin, the aim was $18,000 if the area of around $19,800 failed to hold.

Il Capo of Crypto, another popular account, forecasted key support at $19,000. It has $16,000 as a target if weakness prevails .

The price of Ethereum has bounced significantly in the previous month as traders try to predict how the merging upgrade will affect the market. In recent months, ether prices have dropped below $1,000 before rebounding to $2,000. The price of Ethereum is currently at $1,500. Leverage is the use of borrowed funds to trade, and it is often reserved for expert traders with extensive risk management knowledge.

To trade leveraged products, investors must often make a minimum deposit with a broker that offers this form of trading. Margin trading platforms effectively lend money to investors for them to open larger positions. The Celsius crypto loan enterprise is also said to have failed due in part to the usage of leverage. According to a study issued by blockchain analytics firm Arkham Intelligence, Celsius allegedly transferred $530 million in investor cash to an asset manager who used the funds to engage in leveraged trading. The hazardous action cost the corporation approximately $350 million.