Bitcoin just saw its fifth largest hourly price drop ever; here’s where it may go next
Bitcoin investors were taken aback to witness Bitcoin’s massive flash crash today, which led the benchmark cryptocurrency to plummet from $10,200 to lows of $9,200 in a mere matter of minutes, with its sudden downturn leading the aggregated crypto market to follow suit.
This sudden drop, in dollar terms, marked the fifth-largest decline that the cryptocurrency has ever seen in under an hour, which is a testament to the significance of this movement.
It is important to consider that bulls were able to absorb a good amount of this selling pressure, subsequently leading the crypto to climb higher, and analysts still believe the crypto’s mid-term uptrend is fully intact.
Bitcoin sees a massive $1,000 price decline in unexpected movement
Just a few hours ago, Bitcoin’s peaceful bout of sideways trading at around $10,200 was interrupted when bears catalyzed a significant amount of selling pressure that led the crypto to lows of $9,200, which is where bulls stepped up and began absorbing the intense selling pressure.
Currently, Bitcoin is trading down five percent at its current price of $9,600, which is around where it was trading at just a few days ago.
This latest movement does mark another firm rejection within the lower $10,000 region, signaling that the resistance here may be insurmountable for bulls.
Interestingly, this selloff was the also fifth largest that the crypto has seen throughout the course of its history, which further bolsters the bear case.
Yassine Elmandjra, a crypto analyst at ARK Invest, spoke about this in a recent tweet, while referencing data from CoinMetrics.
“Today marks Bitcoin’s fifth largest hourly price drop in price history. A ~$1000 drop in under an hour. The only other time we’ve seen a greater dollar price drop is at the Dec. 2017 peak.”
Has this movement invalidated BTC’s uptrend?
Despite the conspicuous bearishness of this movement, it is important to note that Squeeze – a prominent cryptocurrency analyst – recently told his over 100k Twitter followers that this is still a bullish market, and that Bitcoin will soon again be trading at over $10,000.
“Ultimately this a bullish market. The BTC price won’t be 4 figures anymore in a few months time. It’s a matter of how long you want to time the bottom. HODLing spot and looking to add long term margins if it hits 9k.”
It still remains unclear as to whether or not Bitcoin will be able to recapture its position within the five-figure price region in the short-term, but it is important to keep in mind that its macro market structure is still firmly bullish.
Bitcoin Market Data
At the time of press 6:19 pm UTC on Feb. 20, 2020, Bitcoin is ranked #1 by market cap and the price is down 6.39% over the past 24 hours. Bitcoin has a market capitalization of $173.44 billion with a 24-hour trading volume of $49.46 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 6:19 pm UTC on Feb. 20, 2020, the total crypto market is valued at at $274.87 billion with a 24-hour volume of $184.84 billion. Bitcoin dominance is currently at 63.09%. Learn more about the crypto market ›