Bitcoin price has dropped by almost 9% followed by the liquidation of 200 MM of shorts on BitMEX. Top 10 coins have also dropped by significant numbers. Furthermore, the crypto market suffered a loss of $16 billion.
Bitcoin Price Drops to $7546
Bitcoin regained $8000 level yesterday after ending a short bearish cycle. However, Bitcoin’s price briefly passed $8,300 before tumbling to $7,546. This led the BTC/USD pair to get stuck in a narrow trading corridor. The pair is trading in the range between $7,400 and $8,500. Bitcoin’s loss also translated into the same for altcoins. Ether has also fallen down by 7.74% to hit $160. Following the price drop over $200 million shorts were liquidated on BitMEX.
Ripple (XRP) and Bitcoin Cash (BCH) fell down by 6.9% and 8.8%. The overall cryptocurrency market cap has shed a total of $16 billion overnight to hit $205 Bn, with Bitcoin’s share nonetheless still at 66.2%. The third quarter of 2019 saw a shift in BTCs price as it skyrocketed to $13,000 USD in late July before crashing to sub-$7,700 USD level earlier in the month. The bearish reversal in price correlates with the plummeting of the 30-day realized volatility – from 6.82% in late July to 3.01% on Oct 22. The slow movement in BTC’s price has been the case in the past week or so as price moved less than 2% daily in the period.
Institutions long on CME Bitcoin Futures
Analysts and traders have been on the edge trying to determine the next move for BTC/USD pair – will the price move towards the major support level at $6,400 or bust through the $8,300 key resistance to test major resistance at $8,800 USD?
It seems that institutions are not in a dilemma on the price movement as open interest on the long positions of CME BTC futures is on the rise in October. Institutional investment mainly comprises of pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers, etc.
Bakkt Volume on ATH
Interestingly, Bakkt volume established an all-time high today trading 296 Bitcoins, making trading progress of 26%.
Will Bitcoin test major support level at $6,400 or break the $8,300 level? Let us know, what you think in the comments below!