Bitcoin Bullish Despite $1,600 Dump, ETH Locks in CDPs Plummet & FXCM Group Launches XRP & BCH CFDs
- Bitcoin is just getting started for its next parabolic cycle
- Ether locked in CDP slides down to 1.71%
- XRP “rarely consolidates” after its “face melting pumps”
On May 17th, Bitcoin was hovering near $8,000 when it took a tumble down to $6,178 level, losing more than $1,600 in the process. At the time of writing, the leading cryptocurrency has been trading at $7,056 with 24-hours loss of 8 percent.
BTC/USD chart, Source: TradingView
In reference to this dump, Bitstamp tweeted that a large sell order was executed on BTC/USD pair. About this Adamant Capital’s Tuur Demeester shared a plausible theory,
“Hedged with a long position on a large exchange such as Bitmex, a whale placed stink bids on low prices and then made a big sell order to cause a flash crash in Bitstamp's thinner order book.”
He further shared how the crash happened around midnight EST when global Bitcoin markets trade on
The reason might be anything but a correction here has been already expected by the experts following the rally that took BTC from around $5,100 to over $8,000. And despite this drop, the market is strong and bullish still.
“CME Futures Gap officially filled. Looks like that was the dip to buy. This is very bullish,”
said Crypto trader and investor Josh Rager.
Shocked from $BTC retracing from $8300 to $7150 in a day?
It went from $4100 to $8300 without much retracement.
This was expected and it's healthy.
Expecting chop at this range now.
Still have 25% USD and will margin long at $6467 which might take a month
— Squeeze (@cryptoSqueeze) May 17, 2019
This correction is a healthy sign of market before we start moving even higher as Mati Greenspan, a senior analyst at eToro in an interview with Bloomberg said that the market is just getting started on its next parabolic cycle.
“IF the pullback does reverse now and we continue past the recent highs, there is virtually no major levels of resistance until $20,000,”
I'm not sure this dip is bullish, but one interesting datapoint: I was in a room with 30 crypto people and no one batted an eye. Strong underlying confidence. I actually thought my phone app might be broken for a second when the tone in the room didn't change.
— Ari Paul ⛓️ (@AriDavidPaul) May 17, 2019
Ethereum Locked in CDP Plunges
Meanwhile, cryptoanalyst, Joe McCann shared how the amount of ether locked in collateral debt positions (CDP) have plunged. Over the past 24-hours, this has come down to 1.71 percent from a recent high of 1.85 percent.
“CDP holders likely debited some of their ETH collateral given the massive run up in price. Maker's system collateralization is now at an ATH of 606%. Healthy for DAI.”
Additionally, per Chainalysis report, 376 whales own 33 percent of Ether, however, Kim Grauer, a Senior Economist at Chainalysis observes,
“The majority of whales aren’t traders. They’re mostly holding.”
On the price front, ETH/USD is currently down 5.74 percent at $238.82 after going to $290 level.
Agree. Many folks that missed the BTC rally will chase performance in ETH.
Many that see $8200 for one bitcoin will see ether as cheap at $250. https://t.co/EIfQMEJtD4
— Joe McCann (@joemccann) May 15, 2019
XRP CFDs Launched
FXCM Group, an international provider of foreign exchange trading, CFD trading, Bitcoin and related services has announced its crypto expansion with the addition of XRP/USD and BCH/USD. This means traders get the opportunity to go both long and short on both of these cryptos.
“The addition of Bitcoin Cash and Ripple marks the latest stage of growth for FXCM’s burgeoning cryptocurrency offering and is in direct response to increased demand from our clients,”
said Brendan Callan, CEO of FXCM Group.
At the time of writing, the third largest cryptocurrency has been trading at $0.377 with 24-hours loss of over 9 percent.
Out of half of my longs. Cutting the rest on a daily close below the green level (no this doesn't mean I'm going to go short). Think we'll retest the lows if that happens.
— Hsaka (@HsakaTrades) May 17, 2019