Bitcoin has lost 17% in the past 5 days and about $45 billion has been wiped out from the market as a deep correction takes place in the market. Meanwhile, Bitcoin shorts are nearing all-time high that along with other technical signals brings the possibility of a short-term bounce.
Bitcoin plummets 17% in 5 days, altcoins having mixed reactions
Crypto market is going through a red phase as bears have tackled the bulls and are dragging the entire market through the ground. During the last 5 days, Bitcoin price has lost 17% of its value as it dropped from $7,380 to the lowest $6,121 yesterday. At the time of writing, it has been exchanging hands at $6,282. Today, Bitcoin price has been trading between the range of $6,239 and $6,373.
As is the usual rule of the crypto market, altcoins took a drop as well. From the top cryptocurrencies, Ethereum (ETH) is down over 3%, XRP more than 5%, and Cardano (ADA) is falling close to 7%.
Meanwhile, Bitcoin Diamond (BCD) with over 23% rise is leading the crypto gainers, then Waves which is registering the gains of about 21% over the launch of its smart contracts, followed by BitcoinDark (BTCD), and Dogecoin (DOGE).
Whereas, RChain (RHOC), Gas (GAS), Cardano, and Basic Attention Token (BAT) are among the ones that lost the highest percentage of their value.
If we take a look from the ATH point of view, XRP, Cardano, Tron (TRX), and NEM (XEM) have lost more than 90% of their values.
Moreover, the total market cap has plummeted below $200 billion at $195 billion. It has slumped from $238 to the lowest of $191 billion, having lost $47 billion in the process.
Betting against bitcoin price, what are the odds?
However, there might be a silver lining at least in the near-term. Traders are betting for Bitcoin price to go down as Bitcoin shorts are climbing to their all-time high while longs are losing the steam. This is leading to a vast gap between the shorts and the long.
But, this can turn out to be a good thing for the market as the crypto expert, Willy Woo shares similar sentiments on the Twitter.
Though his detailed analysis began with prices to plunge even further,
“Prep for it. Our most probable path is to break below 5800 support and some free fall. Whether we bounce for another oscillation or fall through here is TBD. The next support is 4900, which should slow the drop, but 4400 is the next real line of defense. Completes the 3rd cat.”
Then, he moved onto another one:
“NVT Signal trendline support is teetering, we could bounce up for another round to ATH overbought before she breaks. Best to watch for this line breaking, it will likely signal the next major move down within a day or two. (Note: NVT as a trading indicator is still experimental).”
Before concluding with:
“Though I’m confident this is our market environment, since Q2 2017 we have seen the onramp of a new kind of large player (likely algo-based) swinging huge volumes in the markets, so anything can happen given their volume.”
He also shared other areas of interest like OBV which tracks sell-offs and hidden accumulation that is currently showing more sell than the price levels suggesting long-term bearish divergence.
“Though price action is flattening, volatility is too high to suggest an accumulation phase will happen at these levels” he points out.
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