As Bitcoin Price Falls, Marketcap Sinks Quickly

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As Bitcoin Price Falls, Marketcap Sinks Quickly

Posted on September 5th, 2018 in Bitcoin News,Technical Analysis by Trassos Vidalous

In high volatility, the price of Bitcoin retreats and more than $10 billion evaporates from the marketcap in less than an hour.

Following Bitcoin movement this Wednesday other cryptocurrencies also fell considerably to include TRX, ETH, XRP, NEO, LTC, EOS, ADA, BCH and XLM tumbling 10% on average in value.

Basing the Fall

Bloomberg and other media reported that this may have been caused by a rumor that Goldman Sachs would be undoing its plans to launch a trading desk. Mati Greenspan, senior market analyst at eToro, told Bloomberg.

"Even if it's not true, it should be enough to cause a short sale like this in cryptocurrencies"

On Twitter, browsing through #bitcoin, and Telegram finds several reasons for the fall. For example, the great September 1st short was made with insider information.

However, the prevailing theory is that a huge portfolio of Bitcoin having returned active this week, unloading his currencies on market is to blame. A highlight of mine is the humorous tweet from Journalist Tanzeel Akhtar.

Another Interesting read is the analysis of wallet movements being published by Reditor sick_silk which seems more like a distribution of said BTC into other cryptocurrencies than a dump into fiat.

Charting the Fall

With respect to technical analysis, profit taking was expected. Because its continuous rise since the second half of August and the Control Zone around 735x. Said zone covers the BTD - bearish trend line - and the Price of Control set by volume profile, both marked from March onward.
 

Although you never know where prices will go, Bitcoin has maintained constant higher lows, which maintains the bullish count of the Elliott impulsive waves of many analysts.

However, this scenario can begin to be reversed if the price of Bitcoin is traded below the 68xx support level at which a new invalidation area of ​​the bull scenario could be established.