Bitcoin price falls below $8,800, ETH and XRP follow

  • The Bitcoin price has fallen further to $8,640 due to a large liquidation wave on BitMEX.
  • After failing to hold the $9,000 mark on the daily chart, a further bearish move appears possible.

Bitcoin fluctuated in the $9,000 to $9,300 price range for several days until the Bitcoin price showed a correction to $8,600. At the time of writing, BTC is down 4.25% in the last 24 hours and is now trading at $8,788.64. The market capitalization has dropped from $166 billion to $161 billion.

Bitcoin Trader Josh Rager describes that Bitcoin briefly fell below the important support level of $8,800 and this is a bad sign for the next days. Bitcoin must manage to rise above $9,100 again and keep this mark on the daily chart. Rager is cautious in the current market and advises his followers to secure their trades with well-considered stop loss orders.

Well-known analyst Scott Melker agrees with Rager and explained that Bitcoin looks very bearish on the daily and weekly charts. As a result, he has personally switched to trading in shorter time frames. On the chart he shows, Bitcoin is on the verge of losing the 4 hour 200 moving average (MA). This has often marked a turning point downwards in the past. Melker will “scalp” Bitcoin for the next few hours to make short-term profits.

The anonymous trader “Big Chonis Trading” shed light on another circumstance and explained that Bitcoin has tested the support along the $8,800 mark on the 1-hour chart and has maintained it so far. Nevertheless, he also draws a rather bearish scenario for Bitcoin if Bitcoin does not manage to climb above the important $9,900 mark and close above that mark on the daily chart. He also points out that the MA200 is in danger.

According to data from the analyst website, Bitcoin positions on BitMEX worth more than $20 million were liquidated in the last few hours when Bitcoin hit the local weekly low of $8,640. Overall, sentiment among analysts is tilted, with many predicting a bearish scenario for Bitcoin.

On the other hand, Chris Burniske, Partner at Placeholder Capital, noted that Bitcoin may rise soon because the Chinese Yuan has fallen against the USD, which has been a bullish signal for Bitcoin in the past. In previous years Bitcoin has already gained strength when the Chinese yuan has shown weakness:

If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.

The Altcoin market continues to blindly follow Bitcoin and is also experiencing heavy losses. Ethereum falls by 3.42% to $202.94, XRP by 2.97% to $42.65 and Litecoin by 3.98% to $0.19. You can check the prices of over 5,000 cryptocurrencies in our marketcap charts.

Bloomberg: Bitcoin further on the way to digital gold

Another bullish outlook is given by the leading commodity trader at Bloomberg Intelligence, Mike McGlone. He explains that some of Bitcoin’s fundamentals remain strong. Via Twitter, he described that the number of active Bitcoin addresses and the derivatives market has continued to grow. In his opinion, this indicates a growing acceptance of Bitcoin in the retail sector and by new financial institutions.

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