Bitcoin finally decided it was time for a move.
Unfortunately for most of us, that move was down.
In about a 30 minute stretch bitcoin fell from $6,200 down to about $5,500.
(Source: https://twitter.com/search?q=bitcoin&src=typd)
Finally some movement:
Bitcoin had been seeing historically low levels of volatility leading up to today.
In fact, the 30 day rolling average was the lowest level EVER:
(Source:
)https://twitter.com/charliebilello/status/1062687037738885121
- charliebilello
What caused the drop?
Like is the case many times in crypto, it wasn't readily apparent exactly what caused the drop.
There has been a lot of rhetoric out of Craig Wright lately saying how he knows of a way to kill BTC.
While that is highly unlikely, it may be what is being used as an excuse to sell currently.
Bitcoin was at a very important point technically and sometimes all it needs is a straw to break the proverbial camels back.
That may have been it.
Pay attention to bounce:
How bitcoin reacts right now is very important in telling us what likely happens next.
If bitcoin can rally back up to the $5,900/$6,000 area in the very near future, this sell off we just witnessed was likely the bottom.
However, if prices do not bounce all the way back to those levels and instead go sideways for a bit, we likely have more pain ahead.
Currently bitcoin is at $5,700, not high enough of a bounce for me to say the bottom is in. In fact if we don't see a better bounce within the next few hours I would say the more likely move is to break that $5,500 level to the downside.
Cheer for a bounce to $6k in the very near term, I know I am.
Stay informed my friends.
Follow me: @jrcornel