Bitcoin falls back to the $5000 support level as it had begun to consolidate above the $5200 level since 8th April with three small candles in the $5200-$5350 range. However, ‘a shooting star candlestick pattern has been observed on 10th April 2019, where Bitcoin tried to break out above $5400 but failed as it dropped to $5310 again, hence, forming the ‘shooting star.’
The price of Bitcoin (BTC) at 12: 00 Hours UTC on 11th April is trading at $5039 on Bitfinex. The price is trading 4.5% lower on a daily scale.
The altcoins have incurred even higher losses. All the significant altcoins have suffered near 10% losses dragging the total market capitalization of the cryptocurrency markets below $170 billion.
Litecoin [LTC] and Bitcoin Cash [BCH]
Litecoin [LTC] and Bitcoin Cash [BCH] which were the largest gainers during the bullish move, took higher percentages of the losses as well.
The price of Litecoin (LTC) at 12: 00 Hours UTC on 11th April is at $78.26 on Coinmarketcap. The price is trading 11.09% lower on a daily scale.
The price of Bitcoin Cash (BCH) at 12: 00 Hours UTC on 11th April is $263.92 on Coinmarketcap. The price is trading 12.52% lower on a daily scale.
Dapps and Smart Contract Platform Trio: Ethereum [ETH], EOS and Tron [TRX]
Ethereum [ETH], EOS and Tron [TRX] also incurred losses of around 10%. Tron’s drop was the steepest with 14.9% in 4 hours. Ethereum [ETH] and EOS feel by about 9.5% during the same period.
The price of Ethereum [ETH] at 12: 00 Hours UTC on 11th April is $164.80 on Coinmarketcap, while the price of EOS at the same time is $5.31.
XRP also dropped back to its support of $0.33 falling by 8.7% on a daily scale. Similar, metrics was observed on all the other altcoins as it is an evident effect of the drop in Bitcoin prices
Bitcoin Bears Might Cry ‘I told you so’
Tone Vays a leading trade analyst comments that the ‘smackdown’ was ‘expected.’ According to him, it is still too early to call a confirmed bottom on Bitcoin. He would ‘choose to rather be late than sorry.’ Vays called that there is a possibility of further drop and a bounce back from $4000 levels.
On the other hand, firm Bitcoin believers like A. Pompliano, the Co-founder & Partner at Morgan Creek Digital, maintained their conviction towards buying and ‘HODLing’ larger amounts of it.
The rise on 2nd April was surprising as while the bottom in Bitcoin might have kicked, the analysts suggested that fundamentals were still weak and a massive correction was possible. Hence, as Bitcoin seems to hold the $5000 level, it will be interesting to see if the traders ‘HODL’ more or seek to buy cheaper.
What will be the right strategy to trade now? Should the bulls be followed or traders must give up under the bearish pressure? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.