A sharp drop in the price of Bitcoin is sending shockwaves throughout the crypto markets.
The top three cryptocurrencies by market cap – Bitcoin, Ethereum and XRP – lost a collective $16.3 billion in market cap in the span of about an hour and a half.
The aftermath has pushed every coin in the top 10 into the red, with many facing double-digit losses.
Analyst Josh Rager says traders should gear up for more losses. He’s outlining the next level of support at $7,200.
“If buyers weren’t interested in $7,800 Bitcoin, they’re likely not interested in $7,500 prices.
It likely goes lower with confluence support at $7,200 and below.
Even after a natural bounce there, it comes down to where large and agressive buyers are interested. Take it level by level.”
A fellow analyst known in the industry as Mr. Anderson is tracking Bitcoin’s time-weighted average price along with its exponential moving average.
He’s outlining $7,100 as a key number for BTC bulls to protect.
“Spot came within about $70 of its seemingly destined yearly TWAP touch as discussed in early October.
The 89 week-ema is currently at about $7,100 depending on the exchange. This is a number that Bulls must hold on a weekly closing basis.
Joseph Young is pointing to Bitcoin derivatives on BitMEX as the cause of just about every sudden move in the price of BTC.
“What caused the drop? what causes every big price movement? MEX
At this point, I think it’s safe to say BitMEX is the biggest factor in the short term trend of the price of major cryptocurrencies.
Imagine if there was an ETF disapproved or smth and that is framed as the reason.”
According to the crypto data aggregator Datamish, $240 million in longs have been liquidated on BitMEX in just the last six hours.
Meanwhile, analyst Rhythm Trader is offering some perspective on Bitcoin’s price movements throughout 2019.
Although the leading cryptocurrency has plunged from its yearly high of nearly $14,000, he points out that its yearly low clocked in at about $3,150.
“Bitcoin Has Dropped 85% From It’s Year High”
“Bitcoin Is Up 115% From It’s Year Low”
Funny how you only see the first headline. 🤔
— Rhythm (@Rhythmtrader) October 23, 2019