The price of Bitcoin surged significantly above the $4000 level yesterday. Since the $4000 level has been a strong resistance for weeks now, this was considered bullish by analysts and members of the cryptocurrency community. This morning, however, the price of BTC fell sharply below $4000 and was heading towards $3800 when the Binance platform suffered a system Overload as a result of the significant surge in trading volume.
Bitcoin Surges Above $4000 And Falls Sharply In A Sell-off
This morning, BTC was down by more than 6% against the USD trading at $3825. This means that the flagship cryptocurrency was down from $4200 within less than 12 hours. The high volatility made the 100-day MV and the 50-day MV more important as support levels. Falling below these levels will lead to a more significant decline against the USD.
As expected, the price volatility has ignited a lot of responses from cryptocurrency social media. One popular enthusiast with the handle Chonis Trading talked about the 50 and 100-day moving averages. He said that the prices need to close above these averages.
Bitcoin (BTC) Price Today – BTC / USD
The fall in the price of BTC, just like its rise, has affected the entire cryptocurrency market. ETH fell by 9%, XRP fell by 7% and Litecoin fell by 12%. It was a market-wide sell-off. As if this wasn’t bad enough, Binance had a system overload.
Binance Suffers System Overload Because Of Bitcoin Volatility
The trading volume of all cryptocurrencies increased to almost $11 billion from weekly lows of $6.5 billion. This led to a surge in the price of BTC and other cryptocurrencies. The volatility led Binance to record an all-time high which caused a system overload and subsequently delayed transactions on the platform.
After the overload, the CEO of Binance, Changpeng Zhao (CZ), said that the delay occurred when the system was auto-scaling. On Twitter, he noted:
“We have seen [sic] ATH for trading system load about an hour ago, some users experienced UI delays during system auto-scaling. It is still improving.”
The market has been relatively stable for some time now. However, the sudden volatility proves that traders are looking for the perfect trading opportunities. Events in the coming week will give traders more insight about Bitcoin support and resistances. It would also determine if the recent low of $3000 is going to be the final bottom.
Bitcoin (BTC) Price Now
At the time of writing, BTC was trading at $3,838.87. This shows that it is down by 7.76% against the USD. The trading volume over a 24 hour period is $10,851,906,164 while the market capitalization has fallen from over $73 billion to $67,400,257,550. For now, it’s not clear if the price will start moving upward again today. Falling below the current support levels would pave a way for more loses. This may take the price of BTC below the $3500 level.
What do you think led to the rise and fall of Bitcoin and other cryptocurrencies? Share your thoughts in the comment section.