Bitcoin Down over 11%, Is the Market Not ready for Fresh Highs?
- Bitcoin tumbles down from yesterday's $13,200 level to about $11,150 today.
- Could Fed chairman, Jerome Powell’s “serious concerns” over Facebook’s Libra behind this tumble?
- What’s next? More red or flying to $15k
In the red by about 11 percent in the past 24 hours, Bitcoin is trading at $11,710, at the time of writing while managing the daily trading of $3.58 billion, as per Messari’s Real 10, 24 hours volume.
Just yesterday, we smashed through $13,000 only to wipe all the gains that we made throughout the day, falling to $11,160 level. In tandem with Bitcoin, altcoins crashed, down by 6 to 20 percent still.
Why the Drop?
According to mainstream media, this slide is caused by Federal Reserve Chairman Jerome Powell’s remarks on Facebook’s Libra.
Powell said that he has “serious concerns” about the social media giant's planned digital currency.
“Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability,” Powell said at a congressional committee on Wednesday. “These are concerns that should be thoroughly and publicly addressed.”
Powell also called for the company to put a stop to the project until regulators' questions about it are addressed. The Fed has set up a working group aimed at examining Libra.
However, Mati Greenspan, senior market analyst at eToro said this sort of volatility is “normal” for Bitcoin and that the market wasn’t ready to break a “fresh highs just yet.”
The purple circle is the exact time of the Fed's comments on Libra. pic.twitter.com/lYptaCohxf
— Mati Greenspan (@MatiGreenspan) July 11, 2019
With Bitcoin, it’s hard to say what the crypto king is going to do, but we all try. Trader Credible Crypto ahd called out “a move to sub 11k.” Per the chart shared by him, in the coming days, we can still make a move upwards to $13,600 level. But this move, according to him will result in a tumble to $11k yet again.
And if 10.5k doesn’t hold, he is looking for 8k levels. $13,873, 2019 high, meanwhile, is the gate to the moon.
🐻 WIN. Well my bias was right but didn't get any shorts filled as we fell short of my target by a couple hundred $'s and I wasn't awake to pull the trigger on the early breakdown. Would expect a move to sub 11k at this point. pic.twitter.com/gMuKzRndSC
— Credible Crypto (@CredibleCrypto) July 10, 2019
Unlike, Credible Crypto’s bearish price prediction, market analyst and trader Benjamin Blunts who was projecting a similar move like Credible Crypto’s a few days back has now turned bullish.
As Bitcoin stalls and bounce, Blunts says it is making an abc pattern, meaning after a few ups and downs and we’ll head for $15,000.
if this was a flat on btc which was to take us lower, momentum should have kept going, but instead we have stalled and bounced and the decline from yesterdays highs is looking like an abc now instead.
i'm now long 🤷♀️ pic.twitter.com/iPBsAIzTWm
— 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) July 11, 2019
For now, BTC price is in deep red, over 11% and struggling around $11,500. Trading volume has also seen an increase which might mean, more drop.
Moreover, as previously reported, quarter 3 performance usually remains lackluster in comparison to the 2Q that have us breaking multiple price levels.
Bitcoin’s price is $46,754.38 BTC/USD exchange rate today. The real-time BTC market cap of $870.61 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $25.68 Billion and live coin value change of BTC -4.99 in the last 24 hours.