- Guppy flips red, more pain ahead for Bitcoin?
- Meanwhile, altcoins volatility to the upside has been picking up
Yesterday, the Bitcoin price dropped almost 7% as it went from a high of $8,600 to about $8,000 level. Currently, BTC/USD is trading at $8,073 with 24 hours loss of 3.92%, as per Coincodex while managing the daily trading volume of $334 million, up from yesterday’s $175 million. For a brief few minutes, the BTC price dropped below $8,000 falling to $7,989 on Bitstamp.
As Bitcoin price drops, altcoins go in the deep end. ETH and XRP are the least losers with about a 4% loss in their value. Other top cryptos are down between 5 to 8%.
Is this drop in BTC price triggered by Google or Xi Jinping?
The search giant first achieved quantum supremacy earlier this month than last week Google announced its plan to launch the “smart checking” bank accounts via Google Pay that reported 11.1 million users in the US last year, in partnership with Citigroup. Code-named cache, this project is due to be launched sometime next year alongside Facebook's stablecoin Libra.
This move followed Facebook introducing Facebook Pay and Apple’s Goldman Sachs-backed Apple Card. Amazon is also planning to introduce personal accounts for its customers while Uber is offering bank accounts and credit to its drivers.
However, tech giant's recent foray into the banking industry is not in direct competition with Bitcoin, a decentralized, censorship-resistant store of value. As such this news from last week is not expected to push BTC price downwards.
However, Chinese President Xi Jinping might have some contribution to this. After promoting blockchain technology in late October, that led to an increase of 42% in BTC price, as we reported, Xi is now back to reinforcing the blockchain not bitcoin narrative with the CCTV1, the national flagship television network doing a report on cryptocurrencies, calling them “unregistered security, financial fraud, and illegal Ponzi.”
Guppy Flips Red, More Pain Ahead for Bitcoin?
After the 42% increase in price on Oct. 15-16 and trading volume remaining extremely low, a fall has been projected. Though a drop has been already expected, this deeper retracement has the targets changing.
Analyst Bob Loukas who has been expecting Bitcoin to make a move to the upside to $9k before seeing $8,400 now sees the leading cryptocurrency to tumble down to $6,900 level. He said,
“Didn't find the support. Therefore have to lean more bearish with greater respect for downtrend that still (technically) dominates.”
Day 23 and at the midpoint of the Cycle for #bitcoin.
Must find support here. Wouldn't be surprised with a move to $9k from here out of this half low. pic.twitter.com/jNWHRPZfUV
— Bob Loukas (@BobLoukas) November 15, 2019
I really don't like how this looks on a macro level
I'll continue to short every price rally until it stops working, especially with the guppy flipping red pic.twitter.com/XDd0Eqh3Sy
— Altcoin Psycho (@AltcoinPsycho) November 18, 2019
However, this could turn out to be a good thing for altcoins as their volatility to the upside has been picking up.