The price of bitcoin has fallen by more than $ 200, what’s next?
The cryptocurrency market has lost yesterday $ 6 billion of capitalization, down from level 209 to $203 billion, respectively.
The price of bitcoin fell from $6400 to $6256, following the purpose of reducing will be the level of $6165 per coin – this is an important support area that holds the BTC/USD the last half of the year.
After the Bitcoin for almost two weeks (October 15) traded with very low volatility within a few percent (+-$100) with a tendency to further contraction in the triangle, the sharp spurt in prices was predictable – the longer the flat is, the stronger the subsequent market on the market. The trading volume of bitcoin in the last 2 weeks has fallen dramatically – from $667 million to $132 million, respectively.
In terms of the so-called “thin market” when the volume is very low, the market is relatively easy to manage, and transactions of large players can trigger avalanches positions of smaller parties.
This occurs due to triggering of Stop Loss orders, which further pushes the price in the direction of the initial momentum. This is illustrated by the statistics of transactions per second, which yesterday sharply increased from 3,650 transactions in 13-14:00 p.m.-5367 transactions per second in 17:00 MSK – the basic number of transactions occurred after the market began its decline.
Expectations of the launch of a number of important projects, such as Bakkt and ETFs bitcoin funds kept investors in suspense. The negativity caused by the news of the closure of the exchange MapleChange after the break, gave rise to some investors for sales. In conditions, when buyers took a wait, the emergence of sellers has shifted the balance of power in favor of bitcoin.
Also among the negative news for the industry, it should be noted reduction of employees Coinbase of the three divisions of the exchange fired more than 15 people who had previously worked in the departments remotely support the legal compliance and anti-fraud.
Another exchange, Coincheck, reported that in the third quarter of 2018, its losses exceeded $ 5 million. After the January break-in of the crypto currency exchange its losses grow.
Also is cleaning the market from a token – for example, cryptocurrency exchange OKEx will hold delisting of 42 trading pairs with low liquidity and volumes.
Not happy yet and the statistics of the yield of captainvalor – half of them reported losses by the end of September. This is evidenced by the survey data investment firms OK the Blockchain Capital. In September, 24% of traders suffered large losses from 30 to 100 percent, 25% moderate loss of 10 to 30 percent, 14% were able to earn a little money, and 5% decided to wait and see. Only 3.3% said it is receiving a large profit in the first month of autumn.
But globally yesterday’s move, the market situation does not change. While price holds above $6165, to talk about the beginning of the downtrend before. Long-term expectations are positive.
“International Financial Center”