The bitcoin price correction appears to be deepening as the bears ramp up the pressure and the selloff continues. There has been no attempt at recovery from the weekend rout that resulted in BTC losing another thousand dollars.
Bitcoin Flash Crashed But Remains Flat
Aside from one extended wick in a flash crash on the hourly chart touching $9,120, bitcoin has remained flat for the past 24 hours. Following the big dump on Saturday BTC has consolidated around the $9,450 level and is currently trading at [coin_price]. It is currently trading below both the 50 and 200-hour moving averages according to Tradingview. This is likely to lead to further losses on this timeframe.
The intraday high of $9,700 was weak and there has been no further attempt to approach the five-figure resistance level again. RT anchor, Max Keiser, has eyed the liquidation of highly leveraged positions on BitMEX as a possible catalyst for further losses.
#Bitcoin down as @BitMEXResearch unwinds highly leveraged positions. When I interviewed @CryptoHayes he said the avg. leverage (on a scale of 0-100x) was 20. Extrapolating that number, adding recent outflow data, and you get a (temporary) inferred BTC price of $8,800 – $9,300.
#Bitcoin down as @BitMEXResearch unwinds highly leveraged positions. When I interviewed @CryptoHayes he said the avg. leverage (on a scale of 0-100x) was 20. Extrapolating that number, adding recent outflow data, and you get a (temporary) inferred BTC price of $8,800 – $9,300.
— Max Keiser (@maxkeiser) July 27, 2019
Bitcoin is currently trading at the top of that range but analysts are expecting a dip into the $8,000s as the technicals are not looking favorable. Weekly losses from the same time last Monday are at 9.5% and BTC has dumped 20% since this time last month. As it stands the correction from high to yesterday’s low is at 34%.
Fundamentally things are not looking too bad with a weakened dollar and an interest rate reduction expected in the US this week. These are usually bullish for bitcoin but the current correction could have further to fall before it bottoms out.
Altcoins Weakening
As usual, the altcoin markets are shadowing their big brother and are mostly in the red during the morning’s trading session. Ethereum, while flat on the day, has now fallen below $210 as it approaches the key psychological support level at $200.
XRP is back at $0.30 following news that the parent company, Ripple, has been offloading its stash of tokens. Litecoin FOMO has fizzled out with the halving just a week away now. LTC has dropped back below $90 once again with little sign of a return to previous highs.
There are only a few low cap altcoins moving today as the rest continue to shed any recent gains. Crypto market capitalization has not changed much in the past 24 hours and remains at $263 billion.
How low will bitcoin price fall in this correction? Add your comments below!
Images via Shutterstock, Twitter @Maxkeiser, Bitcoin charts by Tradingview