Bitcoin Price Slides Back Below $10,000 but Bitcoin Halving Is Just 82 Days Away

Updated on Feb 20, 2020 at 11:39 am UTC by Jeff Fawkes · 4 min read
Photo: Shutterstock
Photo: Shutterstock
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The cryptocurrency market is all red, with huge candles hitting Bitcoin price charts. Other assets are falling amid the expectations of unlimited growth too.

The total market capitalization shows a massive drop to $278 billion. Ethereum and XRP have lost two percent more in price than Bitcoin did. 

It’s a pity that, till these days, we have the trouble of oversized expectations of traders. Every time Bitcoin breaks through some psychological level, people start weird $100,000 predictions. But in reality, cryptocurrencies experience a constant flow of the price pullbacks caused by seasoned bears, whales, insiders and so on.

At the same time, the next correction of Bitcoin price awaits, and the Halving is approaching. Only 82 days left till the important date, which makes the mining rewards to drop to 6,25 BTC per the block (plus fees, as usual). That’s why mining will remain profitable if the Bitcoin price reaches a stable minimum of $12,000-13,000 per BTC.

Experts Share Bitcoin Price Action Opinions

The bearish sell-off that caused markets to go red was predicted by some analysts and covered by Coindesk. A few factors caused Bitstamp to allow a bunch of lucky traders to buy a chunk of bitcoins at $9,200 a few hours ago. However, they got the rare opportunity, because Bitcoin will pick up the bullish trend again soon. Per Jehan Chu, Kenetic analyst:

“Today’s sell-off was nothing more than short term profit-taking in a market gaining steam. Pullbacks like this are common and we can expect oscillations, but this year’s upward and dominant trajectory for bitcoin is clear.”

Bitcoin Cash (BCH), Ethereum (ETH), and XRP have lost a piece of power too, which marks the important milestone in the road to $10,000. While those assets seemed like they’re gonna conquer new heights, such a scenario didn’t happen. Contrary to that expectations, Bitcoin had lost over $800 in one hour approximately at 21:45 UTC.

Joe Vezzani, the crypto observer and trader from LunarCRUSH, claims he saw a couple of large liquidations:

John Barry from QuantifyCrypto presumes that it may be some large whale selling off EOS stash who caused the overall price fall. Also, the Bitfinex exchange performed well at closing much of the shorts and longs. During the fall, short positions decreased by more than 6%. Also, the majority of cryptocurrencies are losing, with 87 cryptos out of the top 100 having issues with the falling price.

Crypto analyst Josh Rager claims that the new lows and highs are formed, and Bitcoin can go below $9,300, right to the $8,600-8,700. However, if the market wants to return the bullish trend, the price must climb up to $9,800 and more.

After an $800 Plunge the Market Expects Bears and Conspiracy

In less than one hour, only BitMEX alone performed a $126 million worth of liquidations. The stable supply of long orders allows whales to use dominant selling to prevail over the market.

Worth noting that, during the market crash, Tether was minting substantial stash of the coin. Roughly $60 million in USDT tokens were released on the market at 11:47 UTC, ten hours before the price slides down. Only God knows where those tokens were and how they impact the prices. Binance platform got to maintenance one hour after the $60 million were minted.

Previously, Binance users reported that the exchange closed trading with leverage for USDT, indicating they have a lack of the stablecoin. No official announcements were made.

Trader COFFEE points that he doesn’t see where all this ‘moon rally’ fuzz comes from, maybe previous halvings? However, the charts show that they caused a price rise before the halving, and then over the next 6 months, Bitcoin was unable to set the new record.

Halving Approach Will Keep Influencing the Price

Right now, Bitcoin possesses power over facilitating of 1% of the world’s GDP. Willy Woo of CoinMetrics claims that investors pull $727 billion directly into the crypto industry annually. At the same time, Visa is processing around $8,8 trillion in transactions per year. This means that Bitcoin owns 10% of Visa’s market share, and it’s not bad. Woo notices that Bitcoin’s price is growing every four years, which coincides with the halving events.

This time, before the halving, the number of small wallets is increasing while the situation with Bitcoin price remains unclear. This may mean adoption is slowly rising, people buy-in and hold. Or that big whales have decided to divide investments into small parts (for convenience and security of storage and selling or whatever).

The survey shows institutional investors prefer third-party solutions such as crypto funds and online wallets to store their crypto. Which means, they have no idea where those coins go and how the fund managers use them. Considering the number of exchanges and wallet hacks, at least half of unaware ‘investors’ apparently lost their money already.

Altcoins, Bitcoin, Blockchain, Cryptocurrency news, News
Jeff Fawkes
Author: Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.

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