Bitcoin and Altcoins Fall on Bloody Tuesday- What is Happening?
Bitcoin and Altcoins Fall on Bloody Tuesday- What is Happening?
It's no secret that Bitcoin and the altcoin market crashed following a brief altcoin resurgence that occured over the weekend. A number of factorscontributed to the cryptocurrency bust, but brighter days are ahead. This monster dip is likely to be followed by a runup in the coming weeks, but for ow, the charts and technicals look ugly and holding cash is advisable.
Bitcoin fell from $9,600 to $8,500 on September 24th, bloody Tuesday, after remaining in a narrow trading range for almost a month. Bitcoin had been trading between $10,000 and $10,600 during the month prior, and volatility in the asset was decreasing. During the weekend prior to the Tuesday crash, Bitcoin dipped slightly below $10,000 and select altcoins including Lumens, Ethereum and Ripple soared double digit percentages.
Traders are divided regarding what happened, but margin calls off of Bitmex that are 100x leveraged may have played a part. It looks like this was a reaction to a period of Bitcoin price stagnation that lasted for almost a month. When altcoins rose and Bitcoin's domaince decreased, traders took control, and those who held long positions sold to cover. These sales were definitely felt. The market signalled a drop in Bitcoin price, and traders dropped the king of cryptocurrency like a rock.
Bitcoin's decreasing dominance from 69% to 68% preceded the altcoin runup as cryptocurrency market funds shifted from the king of cryptocurrency to value-packed altcoins, as I predicted. Currently, analysts are predicting a further slide to Bitcoin's lower resistance floor of $7,500. I am hesitant to buy here, but purchased some STEEM coin around $0.13 on Blocktrades last night.
Current technicals are ugly for Bitcoin, and after the bloody Tuesday, altcoins that took a huge hit including Ethereum and Litecoin are up slightly. I am sitting on the sidelines until the charts look up for the cryptocurrency market. My advice is to hold cash and pickup some cryptocurrency that will earn the holder dividends through Dapp usage. STEEM and Tron are my long-term picks, and I am a buyer here at low levels.
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Sources:
Originally published in my Publish0x account I own at:
Also published in my Serey, Minds, Hyperspace, Wix, Golos, Bearshares, and Whaleshares accounts I own.
Picture from Pixabay.
https://www.coindesk.com/bitcoins-price-slides-1000-in-30-minutes-after-margin-calls-at-bitmex