- Bitcoin (BTC) continues to trade in the red
- BTC spiked to over $7,400 on BitMEX
- Traders and analysts said the next direction for Bitcoin will be south
Bitcoin News Today – This is day three and the digital currency markets are still heading south. Over the past few days, Bitcoin (BTC) has not been able to amass any momentum to push its price. Volatility seems to be coming back, as a huge spike triggered a lot of liquidation a couple of hours ago. However, the overall picture still looks bearish.
Bitcoin (BTC) Spiked over $7,400 on BitMEX
The gradual downward trend has continued this week. Nevertheless, some false action on BitMEX saw a huge stop run as Bitcoin surged over $7,400. More than $8 million in shorts were liquidated on BitMEX, according to Datamesh. A cascade of sell orders instantly met the move and it caused the price of BTC to plunge below $7,100 in less than one hour.
Bitcoin (BTC) Price Today – BTC / USD
Since then, the digital currency has been hovering around the $7,200 level, which has kept the downward trend intact as it moves towards the $7k support level. There seems to be a lot of bot action on the controversial trading platform that is causing these chart anomalies.
The Next Direction for Bitcoin Will Be South
Many analysts and traders alike are mostly in agreement that the next direction for the world’s largest digital currency by market cap will be south. Josh Rager – a crypto trader and analyst – has pointed out a few scenarios but all of them ended with the same outcome, Bitcoin (BTC) returning to the $6 zone. In a tweet, Rager said:
“$BTC looks like scenario two up to play. Slightly higher on some exchanges but not a retest of the high, before pushing back down to $7k and below.”
$BTC looks like scenario two up to play
Slightly higher on some exchanges but not a retest of the high, before pushing back down to $7k and below https://t.co/rP2YhaBT8d
— Josh Rager 📈 (@Josh_Rager) December 12, 2019
Only a big bounce would able to keep the digital currency in its consolidation channel over the $7k level. Another digital currency trader, Hsaka, is a little more bullish in the near term. Hsaka is eyeing a bounce back towards the $7,400 mark. Hsaka said:
“Would not be surprised to see something like this play out. Darth mauls at support are usually followed by sideways action instead of immediate trend continuation.”
Crypto Market Cap Drops to $195 Billion
The continuous plunge of crypto prices has caused the entire market cap some billions of dollars over the past day. Less than 24 hours ago, the valuation of the entire market cap as at $197 billion. At the time of writing, that value has dropped to $194 billion, the lowest level it has seen this week.