Finally! Are we rid of that triangle? But not in the right way. In just fifteen minutes, the price of bitcoin has fallen by no less than ten percent. We did not expect it to have gone so quickly.
But it is not only bitcoin that suffers, almost all large altcoins go deep through the dust. What is going on? And what could be the reason?
Faster than expected
You can see the development of the price on the graph below. The bitcoin exchange rate fluctuated around 8,800 euros throughout the day. But from nine o’clock in the evening it went really fast. In just fifteen minutes, the rate fell by more than ten percent.
What now?
The course seems to have broken out of the triangle that we discussed in our earlier analyzes. But there is no reason to panic yet. The green line is the 200-day Moving Average. In a bull market this line often serves as support.
It is also positive that the RSI is at a low point on a daily level. The RSI is now oversold, which means that a lot has been sold in a short time. In the short term it may be that the decline in bitcoin is now over. The rate even has room to rise again. Read all about price indicators such as the RSI here.
Not just bitcoin
Where bitcoin drops, altcoins often go with it. That is why not only bitcoin has fallen, but actually all altcoins have fallen double-digit as a percentage (okay forward, not Tether).
We can find many big losers in the top ten largest crypto coins in terms of market value. A small round along the rates of the largest coins:
Bitcoin SV (-33.65%)
EOS (-24.85%)
Bitcoin Cash (-22.59%)
Litecoin (-18.88%)
Ethereum (-17.37%)
Binance Coin (15.07%)
XRP (-15.06%)
In just under fifteen minutes, the entire cryptomarket has surrendered 18 billion dollars (16.3 billion euros) in value.
What could be the reason?
In the case of a crash like this one, it is always guessing why. Even if the material has been pulled up and bitcoin has regained its back, you can never say with certainty what the causal connections are.
But there are already indications. The first indication is of course the famous triangle that we have been writing about for some time. For months the bitcoin course seemed to be consolidating and actually enjoying it in that triangle. This afternoon you already saw the course tickle the bottom of that triangle.
In addition, today there was also a hearing in the senate about Libra from Facebook and cryptocurrency. The SEC is a guest at the request of Maxine Waters, and both are not really cryptominded.
The provisional last indication is that in the week of the last Friday of the month, the rate has shown the same for months. In that week the rate often drops by ten percent. This is due to the expiry of large contracts at the CME. And now we are also in the week of the last Friday of the month.
What do you think? Has the bottom been reached?
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