What’s Next for Bitcoin After Crashing Hard to $8,030 Level?
- BTC down 14% with altcoins in free fall
- Apart from BitMEX liquidating $600 billion, the bloodbath could be Bakkt launch following ‘buy the rumor sell the news' on a “very large scale.”
Bitcoin price is crashing hard.
The leading cryptocurrency yesterday took a hit and dropped to $8,030 level, in a sudden and drastic move.
In the past 24 hours, BTC lost more than 14% of its value, while currently trading at $8,396, as per Coincodex. This has the trading volume shooting up to over $2.7 billion, which was down around $400 million last and earlier this week, as per Messari.
While Ethereum is making its way to $150, XRP, although down only 6% in the ongoing bloodbath is now worth less than a quarter.
Total market cap has lost 15% of its value during this bloodbath while BTC dominance is at 70.87%, as per TradingView.
What Caused this Crash?
The plunge happened amidst the massive liquidation of long positions on the derivatives exchange, BitMEX. This liquidation of about $600 million in long position could have contributed to the drop.
“$600mln have been liquidated on BitMEX in last hour representing >50% of total open interest. An underwhelming Bakkt launch will probably be the ideal candidate to blame for the move,”
reported Skew Markets, a data analytics company.
Bakkt is a reason behind the drop according to eToro senior analyst, Mati Greenspan as well, who said this was all about, ‘buy the rumor sell the news' on a “very large scale.”
However, according to the former hedge fund manager and founder of crypto asset management firm, Travis Kling it’s the global macro effect — rate on overnight repo transactions soaring to record levels — on crypto.
Some smart investors that actually like and respect me say I'm crazy for thinking that Global Macro has a big effect on crypto.
I think they're crazy for thinking these two things are entirely unrelated. pic.twitter.com/xYTSJVbCY7
— Travis Kling (@Travis_Kling) September 25, 2019
The repo market situation is actually a symptom of a larger situation dubbed “dollar shortage,” he said.
Crypto trader and investor Josh Rager says if Bitcoin fails to break above the current level, it would retest the support below at $7,800 and $8,100 zone that has bounced once and could hold.
“But if this isn't a bear trap I do see price heading down to low $7ks,”
he said before adding that lots of buyers are waiting between $6,180 and $6,500 area.
Analyst The Cryptomist is expecting to hit $7,200 in October that would come after one leg up that if we retest $8,200 first, could jump to $8,670 region.
According to Greenspan, the next levels of support should BTC break lower are $7,500, $6,200, $5,500, and $3,122 but not before adding,
“Of course, we're hoping for a nice bounce off this 200 Day Moving Average and take us #ToTheMoon!!”