Bitcoin hit a 4.28% decline in the last 24 hours, sending prices to just a tad more than $10,000 and getting everybody anxious about an even lower drop that could sink down five figures.
It has been downhill recently, since the prices hit below $11,000 last Thursday as it got deducted by around a thousand bucks. The status of the stock market in the United States had a massive sell-off, spearheaded by the big names in the tech industry.
Spectators of the crypto and BTC market have had their time in the sun when Bitcoin went through a ‘bull market’ since March when the pandemic peaked in America. Now, they are cautious as to how it will go about after this decline.
The 2020 bull market of Bitcoin has seen the highs and lows that came at the early part of the year - from $4,000 to soaring more than $12,000. If the fall continues, the hype would end and it would send the bullish market crashing.
Bitbull Capital CEO Joe DiPasquale says that the “last zone of defense” would be in the 10,000 to 10,500 range and traders should keep a close watch on its activity. “As long as this range is respected, bitcoin is unlikely to see a prolonged bearish spell,” said DiPasquale.
Collected data on the crypto exchange activity shows a “sell pressure” that the market needs to overcome based on analysis by an economist at Chainalysis. The oncoming flow of Bitcoin were at a high because of rush sales when prices were approaching $12,000. However, trading activity was close to stagnant because of lack of buyers.
Bitcoin miners on the other hand are bringing a lot more to the table than expected. When CryptoQuant analysts examined, it is highly likely that miners are seeking to withdraw their rewards from Bitcoin for their services.
Miners are moving unusually large amounts of #BTC since yesterday. #Poolin, #Slush, #HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange.https://t.co/NcLmXvZmOD pic.twitter.com/N3E3mX4QKn— CryptoQuant (@cryptoquant_com) September 3, 2020
Everyone’s eyes are on the 10,000 line right now. Mati Greenspan of Quantum Economics speculates that the fall of Bitcoin may be attributed to the rising US dollar valuation. Bitcoin, or the crypto market in general, has defied expectations repeatedly. Traders hadn’t had much of a chance to take advantage in the continuous rise that began in July. But he says that if the current market situation worsens, then the urge to buy Bitcoin at a price lower than $10,000 may just become too hard to resist.