Bitcoin faces selling pressure and builds new support around $8000
- By Pierre-Alexandre
September 30th, 2019
Bitcoin lost nearly 20% of its price over the last week while losing nearly $40 billion in its market cap.
The Bitcoin price has taken a heavy beating last week as the world’s largest cryptocurrency lost 20% if price. After consolidating around $10,000 levels for some time, Bitcoin price has crashed below $8000 levels as on date.
As we can see from the Bitcoin’s weekly price chart, BTC lost $1000 of its price in a flash crash on Tuesday, September 24. Since then, there seems to be high selling pressure and the BTC price takes a downward momentum.
With today’s price fall, Bitcoin registered a $40 billion loss in its market cap in just one week. At press time, Bitcoin is trading at a price of $8240 with a market cap of $148 billion.
Top Recent Bitcoin News
- ICE’s Bakkt Platform launched its Bitcoin Futures contracts last Monday, September 23. However, Bakkt’s futures contracts failed to live to the hype as only a fewer number of contracts have been traded on the platform, at the opposite of expectations.
But analysts say that Bakkt Bitcoin Futures are operating in a completely regulated market. Thus it will see low adoption initially but gain popularity gradually.
Bakkt will be likely first a trickle and then a flood. The reality is that most regulated futures contracts get low adoption on day1 simply b/c not all futures brokers are ready to clear it, many ppl want to wait and see, the tickers are not even populated on risk systems, etc.
— Su Zhu 🦁 (@zhusu) September 23, 2019
@bakkt adding a new way to buy Bitcoin, adds a regulated market more institutions can use. but we won't really "find out tomorrow" as it takes time for companies to setup accounts, decide trading strategies & for volume to build. recall CME futures open vs today's growing volume.
— Adam Back (@adam3us) September 22, 2019
- Crypto exchange Binance launched its Binance US platform that will work under US regulations and laws. The Binance US crypto trading services are available at 37 states across America.
- Last week, Arcane Research released a report showing the possibility of heavy manipulation in the Bitcoin price. The researches found a striking co-relation between the BTC price drop during each monthly settlement of the CME Bitcoin futures.
Arcane's Bendik Norheim Schei said that CME’s Bitcoin Futures contracts are cash-settled which makes them ideal for price manipulation. He added: "These futures contracts are optimal for manipulation. They are settled in dollars and not in bitcoin. The price for the settlement is determined by the bitcoin price in the underlying market. Thus, it is never actual bitcoin that change hands, and it is just an overlying market traded in dollars”. - Amidst the crippling state of its economy, the Venezuelan central bank - Banco Central de Venezuela’s (BCV) - is adding Bitcoin, Ethereum, and other cryptocurrencies to its reserves, says a Bloomberg report.
With heavy U.S. sanctions, Venezuela’s reserves have dropped to just over $7 billion hitting a three-decade low. On the other hand, the country’s state-owned cryptocurrency Petro has failed to make any impact ever since its launch in January 2018. - According to analysts, the short-term picture around BTC price looks bleak. Analysts expect further selling and downfall in the $6000-$6300 range before Bitcoin starts a fresh new upward journey.
Have been asked how far can $BTC drop
IMO, the lowest $BTC will hit: between $6300 to $6600 where there is major interest
Price currently bounced off monthly support & if this area breaks could head to $6600 - based on higher time frames pic.twitter.com/sBiKFu7qAc
A range of 100 days just broke to the downside.
— DonAlt (@CryptoDonAlt) September 24, 2019
If this is a bullish shakeout it'll be obvious once BTC reclaims $10k.
If this is bearish I don't want to be long.
Buying this feels like buying $5500 after the $6000 break.
Something I'm not willing to do.
- On the other hand, there are some industry experts who are still much confident of a gloomy picture in the long-term.
If you bought Bitcoin this summer at $12,000 because it was going up, and you’re selling it now at $9,700 because it’s going down, you’re doing it wrong. “Hodl” isn’t just a cute meme... it’s wisdom from the elders who have been here before.
— Erik Voorhees (@ErikVoorhees) September 24, 2019
Bitcoin’s short term price movements have nothing to do with the long term outlook.
— Pomp 🌪 (@APompliano) September 24, 2019
This is true in both directions.
He paid $102 for his bitcoin and sold them for $510, while regretting he didn't instead sell them for $13,600.
— Rhythm (@Rhythmtrader) September 29, 2019
That same amount of bitcoin is now worth $13,600,000.
Learn the value of hodling. pic.twitter.com/TSbol36sVO
Bitcoin Market Review Using Omenics' Sentscore
As we can see from the Omenics’ Sentscore chart, the overall market sentiment has dropped from the “positive” region to now oscillating into the “neutral” region.
Similarly, the news indicator shows a major drop falling from the “positive” region going all the way to the “negative” zone. Later, it has recovered back to the “neutral” zone.
The social Sentscore chart for Bitcoin sees a dip but recover back into the “neutral” zone.
The Sentscore buzz chart shows an inverted movement with respect to its price. The chart has moved from “not trending” zone to now into the “less content than usual” zone.
However, the technical chart movement is in parallel to the BTC price movement. The technical chart has dropped from the “bearish” to “very bearish” region but recovered back in the “bearish” zone between 2.5-4.
By Pierre-Alexandre
Pierre-Alexandre is passionate about new technologies and innovation. After several years of experience in software and innovation agencies, he wanted to go all in on the blockchain revolution and co-founded Omenics.
