Bitcoin HODL Joy Was Short-Lived as Price Falls to $8,285 with Overall Market Tumbling

Updated on Feb 4, 2020 at 11:40 am UTC by Teuta Franjkovic · 3 min read
Photo: QuoteInspector
Photo: QuoteInspector

Bitcoin price crash dragged down the prices of most major altcoins, with the prices of all top 20 (by market cap) crypto assets currently in the red.

Even though on Thursday (May 30), Bitcoin (BTC) price went up from $8,744 to $9,046, breaking the $9,000 resistance level for the first time in 2019 – Friday came up with the new surprises.

It seems that Bitcoin HODL joy was short-lived because, within the next 10 minutes, Bitcoin price had fallen to $8,285. And even worse, the BTC price just kept on falling.

We asked Novak Svrkota, one of the prominent fund managers from Crypto exchange “Kriptobroker” what is happening? What is behind sudden price drop of all of the altcoins?

He said:

“Price is basically a battle between two armies, an army of sellers and the army of buyers – if we consider the last two months.

Bitcoin went parabolic and made some insane gains (+130%). We actually haven’t been seeing the real price corrections except that flash crash that had happened a week ago.

There are two options. One considers that we are gathering strength for attack on $11,200 and another would mean that the bull run is over and we are going to see 30-60% correction.

What investors should consider before is definitely the fact that as price is going higher, there are less gains to be made. It is a simple math. Rise of $1000 from $4000 to $5000 becomes 25% gains!

Same rise from $8000 to $9000 gives half of that gains or 12.5%. I have been personally very bullish about bitcoin long term until the end of 2021 , and I thought it can go anywhere 30-300K.”

As usual, Bitcoin’s price crash dragged down the prices of most major altcoins, with the prices of all top 20 (by market cap) crypto assets currently in the red.

Here is how some of the most popular cryptocurrencies have been affected at the time of writing:

Ethereum (ETH): $256.94 (-9.36%)
XRP: $0.423 (-8.48%)
Bitcoin Cash (BCH): $424.69 (-9.21%)
EOS: $7.6 (-6 %)
Litecoin (LTC): $108.26 (-7.36%)
Binance Coin (BNB): $31.58 (-7.06%)

Mati Greenspan, Senior Market Analyst at social trading/investing platform eToro tweeted:

When asked if the massive bull run we’ve seen for several weeks is over now, he revealed exclusively for Coinspeaker:

“It’s still a bit early to say where this is headed. We’re coming off a massive bull run and even if we are about to see a prices go much higher it stands to reason that we’ll see more than a few pullbacks along the way.”

Russia’s Largest Bank Drops Crypto Plans Over Regulators’ Negative Stance

Be it as it may, Russia’s largest bank, the state-owned Sberbank, has dropped its cryptocurrency-related plans over the country’s negative stance towards cryptocurrencies and blockchain technology, according to vice president Andrey Shemetov. Shemetov said:

“Regarding cryptocurrencies, we waited for legislation that allows you to trade cryptocurrencies. Since the regulator is currently looking negatively [at cryptocurrencies], we decided to suspend our cryptocurrency plans.”

Even though there was a  massive plunge in 24-hr spiral, Ethereum price established its year-to-date peak at $288.77. However, the level experienced a huge selling sentiment, probably due to day traders that might have exited their long positions to squeeze out a decent intraday profit. The price, therefore, came back to its prevalent bull pennant

Altcoins, Binance, Bitcoin News, Cryptocurrency news, Editor's Choice
Teuta Franjkovic
Author: Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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