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Bitcoin price suddenly dips below $7,000 level on April 10, dragging with it the total crypto market cap below $200 billion. ETH and XRP followed the same volatility, as panic gripped the crypto community.
Bitcoin (BTC) price suddenly dropped below $7K on Friday, April 10, shedding over $400 in a few minutes. The sudden price fall has seen the crypto market cap fall below $200 billion, according to CoinMarketCap. Besides, the fall was similar to that observed in XRP and ETH.
Bitcoin price is retesting a very critical zone that acted as a support level at the beginning of the year, which resulted in a bull rally to hit $10k. The same level acted as a strong resistant zone before breaking out at the beginning of the week.
On the short term basis, the upward rise will be valid if the price respects the current level and rally upwards. At the time of writing, it was trading at $6,878.23, reciprocating to approximately a 6% drop from yesterday’s high.
XRP recorded a drop of 6.20% to trade at $0.19 at the time of reporting, while ETH dropped 7.27% to trade at $158.46.
Panic Grips Bitcoin and Crypto Market
Coronavirus has so far been pushing the market deeper, with the crypto market increasing in volatility. A huge number of crypto investors are mixed up on what to do at these uncertain times. A significant pack is opting to watch from the side, increasing the fear as the volatility surges.
According to CNN Money, it showed that the crypto market is recording 15 in the Fear & Greed index. This is read as extreme fear, which is a figure that depicts the mind of most crypto investors.
The figure cannot be compared to that of the traditional stock market, which on the same index recorded a reading of 43, fear.
However, a huge number of investors are taking advantage of the current prices to accumulate more coins, with the hope the market will recover and give them a good return. On the higher time frame (weekly), the rising channel is still valid, whereby the breakout will see it hit and surpass the all-time high.
What’s Next for Bitcoin Price?
The drop happens to have coincided with the end of the week, whereby an increase in volatility is mostly observed during the weekend, in the crypto market.
With the halving fast approaching, several fundamentals are working for the crypto market rise. The coronavirus is pushing more people and institutions to adopt the cryptos, as it is delivering to the current needs, where social distancing is prevailing.
The volatility is going to be high in the coming days, owing to the fact that speculation trading rules the crypto sphere.