Over the past few hours the price of Bitcoin fell from around $8500 to $7732, almost 14% against the U.S. dollar, according to Coinmarketcap.
Technical analysts predicted BTC pullback after a 130% growth since the beginning of the year. But such is the magnitude of the fall of the dominant scriptactive for a short period of time has puzzled traders. If in the near future Bitcoin will not show a rapid recovery, some analysts say a further pullback to the range of $7300- $7100.
Why the Bitcoin price fell
Some investors suggest that the sharp fall in the price of Bitcoin was caused by manipulation of whales, which keep large amounts of BTC in the hundreds of million dollars.
“Approximately 20-30 minutes to the city dump, the whale was transferred 25000 BTC ($215 million) on Coinbase. And about an hour after he translated 14000 BTC ($112 million) from Coinbase to another wallet,” wrote one Reddit user.
It is possible that a large sell order could trigger the downward movement of Bitcoin and the entire cryptocurrency market. Given that daily trading volume in pairs: BTC/USD on Coinbase is traditionally estimated less than $215 million, the suspicion that an attempt of manipulation is justified, and a large sell order on one of the main exchanges could trigger a break through key support levels and likely contribute to a fall.
Top Doji on weekly chart correction begins. $BTC pic.twitter.com/9L9YCZbrP8
— Peter Brandt (@PeterLBrandt) June 4, 2019
Cryptocurrency analyst Josh Rager, said that if the price of Bitcoin from the last forces will try to stay at $ 7000, there is a high probability of further large pullback, noting:
“Bitcoin continues to try to keep the level above $7800, taking into account the previous gap futures on the CME, which was marked at $7175. If the bulls do not intervene, I believe the price will move in this direction.”
How long will fall?
Many people are interested in, whether it was a short sale, and the price will rise again, or Bitcoin will go down in the next peak, which could take hours or days before a push up to re-test the next support level.
As we know, the price indices of cryptocurrencies are rarely a straight line. In the last four years the price of Bitcoins has tended to capture 30% kickbacks on average after every extended rally.
Roll back 30% of $9000, can lead to a drop to around $6400, what technical analysts do not want to see, not considering the historical trend of price movement and its momentum in recent weeks.
The position of the traders in this matter is more cautious, but quite optimistic, after a night of falling prices of Bitcoin.
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