Bitcoin Price Collapses by $700 in Minutes, Bearish Trends Surface

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Bitcoin has been struggling of late to get its price back on bullish trends as the latest collapse saw it fall dramatically in a space of a few minutes. Bitcoin is now flirting with the $10,000 mark, sitting at $10,151 at time of publishing, as it battled to break $11,000.

This fall intercept represents a near fiver percent drop over 24 hours and has essentially seen all of the week’s gains wiped off, returning to figure that was seen nearly seven days ago after the last fall in price. 

Bitcoin has been getting closer and closer to the $11,000 mark once again, with many feeling that this would be an important resistance point to break. However, as Bitcoin reached $10,900, so the collapse began.

Many commentators and predictors were claiming that $11,000 was due to be recaptured in this week, but those theories have been blown out the water by this recent drop; a drop that has come after a rise predicated on global financial uncertainty which has cooled in the last few weeks. 

Needing to cross $10,200

Last week’s closing price was around the $10,200 mark which now becomes an important one for trader to keep an eye on. If it is able to close above this price then Bitocin will have managed to bounce off a long term trend line, according to regular trader and analyst Josh Rager.

“Currently bouncing off long term trend line and wanting to watch a close above $10,200,” said Rager.

There is bearish sentiment returning to the Bitcoin space, with drops like this and the inability to close above its previous weeks close. These indicators are also backed up by a few other metrics which have emerged in this down period. 

Among this is the so-called Fear & Greed Index, which tracks price moves based on whether investors are too eager to buy or sell. Right now, on a scale of 1 to 100, the index is at 11, constituting extreme fear and suggesting markets are oversold. 

However, even with this bearish sentiment returning, there is still long term optimism for the cryptocurrency especially in the light of its impending halvening. Bitocin is set to cut its block mining rewards in May of 2020 which will lead to less coins entering circulation and should boost demand. 

No good for altcoins

Along with this large Bitcoin dump has come fresh agony for altcoins which are now back down in the dumps after their own reasonable gains this last week. Many of the altcoins have actually been hit harder than Bitcoin in this most recent fall. 

Chainlink, down nearly 10 percent is the worst hit in the top 20 based on market cap, with Monero down over seven percent and Bitcoin SV also struggling. However, there is some positive news for Ethereum Classic, the only top 20 coin in the green. 

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