Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Bitcoin price first dipped a toe under the $9,000 mark, then went on to erase profit positions gained since the dramatic rally at the end of October. The slide took BTC to $8,780.84 as of 15:25 GMT on Friday, with plenty of leeways to drop as the weekend hovered with lower volumes. Here are five reasons why this happened.Â
Bitcoin Whales Calling Quits
Crypto exchanges saw outflows in the past days, with no new serious tranches of either BTC or Tether (USDT). The recent dump, based on order books, seems to be a capitulation and a selling pressure, to realize partial profits from the recent bitcoin price rally. Previously, whale watching bots noted a series of large-scale transactions of coins to exchanges, lying in wait for potential selling.
#Bitcoin order books look out of balance now to the bearish side. Don't forget, momentum can snap back quickly. pic.twitter.com/LKeNcssl34
â Gabor Gurbacs (@gaborgurbacs) November 8, 2019
Order books reveal a pattern of selling pressures coming in from large-scale BTC traders. At this point, the selling momentum may see its tide turned at any moment, but for the time being, Bitcoin price seems solidly pressured at least to the $8,800 level.
On-Chain Metrics Point to Sluggish BTC Usage
Bitcoin transactions became almost languid in the past week, as price stagnated. Low activity suggests that most coins lay dormant, and there was no possibility for explosive price action. On-chain Bitcoin transactions and their value can indicate preparation for serious trading volumes. This weekâs on-chain BTC metrics indicate that the benchmark crypto wasnât in a mood to galvanize.
1/ This week's #onchain market observations:
Core #Bitcoin on-chain metrics are at monthly lows (adjusted transaction volume, exchange inflows, active addresses).
Healthier levels are required to set the stage for the next bull market.https://t.co/Otgo2bPILp pic.twitter.com/9Q9zkWCRxP
â glassnode (@glassnode) November 8, 2019
Bitcoin is one such cryptocurrency, which has a strong correlation between price and on-chain transactions, and the current metrics are not matching the expectations for a bull market. This, as with others, can be altered at any moment. But the buildup of slow coin movements ended in Fridayâs sell-off.
Bakkt Action Picking Up
The Bakkt Bitcoin futures exchange saw a piling up of activity in the past day. Trading accelerated, with numbers approaching the 1,000 BTC record mark within 24 hours. This is still small compared to the overall crypto market volumes, but the Bakktâs price discovery process has the potential to affect ongoing BTC sentiment.
â Today's volume so far: 970 BTC ($8,419,600)â Last traded price: $8,680â Trading day progress: 34%â Current daily Bakktarget: 2027 BTC ($17,594,962)
â Bakkt Volume Bot (@BakktBot) November 8, 2019
 Bitcoin Price Stepping into Dangerous Territory
Bitcoin prices moved into somewhat dangerous territory, charting a âdeath crossâ of moving averages. This situation further returned traders to bearish attitudes.
$BTC Death & Golden Cross
Don't know why nobody is talking about it, but #Bitcoin death-crossed on the daily, the last time it happened was around March 2018. After the death-cross we had a significant drop in price. After the golden cross in April 2019 a significant price jump. pic.twitter.com/ImUF6L5F1Z
â âżitcoin Catz (@BitcoinCatz) November 8, 2019
At this point, too much-concerted effort would be needed to bring BTC out of that zone. In 2019, the effects of the âgolden crossâ and the âdeath crossâ were highly visible.
Weak Hands Leaving the Market
The other factors affecting Bitcoin prices were more indirect. Mining has slowed down, causing the first fall in difficulty since the summer price rally. Chinese traders are still highly active with BTC trades, but there are also signs for looking at altcoins for higher returns.
The recent downward movement of stock indexes on the US markets may have added to some of the panic-selling. Bitcoin exchanges still see enough retail interest to have âweak handsâ on the markets, selling in panic as the recent rally unraveled faster than expected. The bullish promise of Bitcoin price reaching $16,000 âsoonishâ may have caused an unpleasant surprise as the prices crashed so easily under $9,000.
Obvious retest after a 40% pump. Waiting for a retest of 8400. $BTC needs to cool down. Letâs remove all weak hands before the pump. #crypto #cryptotrading pic.twitter.com/M0JavAaM7N
â The KONG (@CryptoKong4) November 8, 2019
Bitcoin price is set on a multitude of exchanges, in contrast with earlier periods when a handful of markets took the bulk of volumes. Currently, USDT still drives BTC, but through a wider distribution on a series of innovative crypto-to-crypto exchanges. Bitcoin remains highly risky and unpredictable, and the current slump is no guarantee for continued downward action.
What do you think about Fridayâs BTC slump? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @gaborgurbacs, @glassnode, @BakktBot, @BitcoinCatz, @CryptoKong4
The post 5 Reasons Why Bitcoin Price is Crashing Right Now appeared first on Bitcoinist.com.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.