Bitcoin Is Down To $5500 Level. Major Sell Off Taking Place

For several months now, Bitcoin has been on a sideways channel until yesterday 14/11/2018, when for some apparent reason, there was a massive sell off. Not only for Bitcoin, but all other major cryptocurrencies too. Today’s drop has decisively pushed its price below its previously established support level of $6,200, which it has held on multiple occasions in the past couple of months.

The major market drop off took place between 10:30 a.m. (UTC -5) and 12:00 p.m., with some of the top 20 cryptocurrencies dropping by as much as 18 percent at press time, according to data from CoinMarketCap.

Visualization by Coin360

Ethereum (ETH) the second cryptocurrency by market cap, has plunged below the $200 threshold, and is down 13.4 percent over the day. The altcoin is trading around $179 as of press time, according to data from CoinMarketCap.

The fourth top cryptocurrency, Bitcoin Cash (BCH), is seeing the biggest losses across the top 20 tokens by market cap. The coin, which is scheduled for an update that will likely result in a hard fork tomorrow, Nov. 15, is down more than 16 percent, and is trading at $433 at press time, according to CoinMarketCap.

Total market capitalization has dipped to as low as $187 billion today, which represents the lowest point since early November, 2017, according to CoinMarketCap. As of press time, total market cap has slightly rebounded to $190 billion.

While the markets have seen an immense sell-off, Bitcoin has experienced some growth in terms of market share. According to CoinMarketCap, Bitcoin’s dominance rate has increased to 54 percent, while in the beginning of the day it amounted to 51 percent. At press time, Bitcoin’s accounts for 53 percent of market share.

What We Think Is Happening…

It now appears that Bitcoin will test its yearly lows of approximately $5,800, and an end-of-year rally is looking significantly less likely. But at the time of writing, Bitcoin has already broken pass this yearly low. It’s now trending at $5,655 levels.

Ricky Li, the co-founder of Altonomy, a cryptocurrency trading and asset management firm, spoke to MarketWatch about BTC’s latest price action, explaining that it is unlikely that it will see any immediate positive price action due to a lack of interest from retail traders.

 “Bitcoin is not only going through low volatility, but also very low volume. It’s at the lowest trading volume in 2018, especially the spot market. This signals a very low retail participation. So without enough external funding or retail participation, the market is probably going to stay around the current price with low volatility and volume in the near future,” Li said.

At the time of writing, XRP is trading down over 15%, at its current price of $0.438. Yesterday, XRP was retesting highs of approximately $0.53, and its pricing action was looking bright. Today’s drop is now bringing yearly lows back into play, with XRP’s year-to-date low hovering around $0.25.

Total market capitalization has dipped to as low as $187 billion today, which represents the lowest point since early November, 2017, according to CoinMarketCap. As of press time, total market cap has slightly rebounded to $190 billion.

While the markets have seen an immense sell-off, Bitcoin has experienced some growth in terms of market share. According to CoinMarketCap, Bitcoin’s dominance rate has increased to 54 percent, while in the beginning of the day it amounted to 51 percent. At press time, Bitcoin’s accounts for 53 percent of market share.

Ironically, Tether (USDT) has also seen some volatility today, temporarily moving above the ever-so-important $1.00 figure that it has been struggling to reach, before crashing back to its current price of $0.98. This signals that traders are rapidly buying and exchanging USDT units in order to execute trades and could signal that there is more volatility to be seen in the day ahead.

Let’s cross our fingers and hope Bitcoin’s sell-off doesn’t break past the next psychological support of $5000 or else the worst may be looming for Btc.

News piece courtesy of Coindesk & Cointelegraph. Image source: NASA

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