The market is on a freefall as Bitcoin dipped below the $7,000 USD mark, representing a 2% loss in the past 24 hours. All top altcoins have lost over 5% in the same period as Ethereum (ETH), Ripple (XRP), Litecoin (LTC) lost 7%, 4% and 8% respectively over the last 24 hours.
Bitcoin dipped below $7,000 as market suffers bear momentum
It’s been a long time coming! The top cryptocurrency dipped below the $7,000 USD mark for the first time since May following a 2.24% dip to $6,962, as at time of writing. The sharp fall started at 9.00 PM EAT on Monday as Bitcoin lost over $200 USD in an hour representing one of the worst hours in recent trading times in the market.
$BTC – Finally caught a short to low $6.9s which has been my target for a few days.
I entered based on the LTF reclaim of $7090s which has been a key area since the initial selloff on the 14th.
— UB (@CryptoUB) December 16, 2019
The drop below the $7,000 –and a break below the rectangular pattern support – signals the coin is set for a further downtrend towards the $6,500 support levels in the coming trading days. The 3% dip in BTC’s price has seen the whole market lose ground as the total market cap dropped over $3 billion USD.
The weekly price dropping below the MA line further signals the bearish momentum in the Bitcoin market. According to one crypto trader on Twitter, the coin is entering an accumulation period as daily trading volumes keep rising.
The good thing is that if this is a bullish bottom, we have time
I much rather await how price develops towards the level than to have bids and risk it will just puke through it
Accumulation is a slow process
Patience is always key pic.twitter.com/OnqDViH4bj
— //Bitcoin ?ack (@BTC_JackSparrow) December 16, 2019
Over $40 million XBT contracts liquidated
According to live data from Datamish, an exchange tracking platform, over $40 million USD Bitmex’s XBT contracts were liquidated following the sharp fall to the $6,800 USD region. Bitcoin bulls on the exchange will bit their teeth off as $43.3 million USD worth of contracts were liquidated over the past 24 hours. Over 1.4 million long contracts were liquidated during the weary hour, representing close to $30 million USD.
While the drop to $6,500 USD now seeming inevitable given the break below the rectangular pattern formation, bulls will look at the rising volumes with pleasure given the extended low volume period suffered through the market.