The price of Bitcoin plummeted from $7800 to $7200 in 20 minutes on major exchanges like Bitstamp, Coinbase, Bitfinex, Gemini and Bittrex a few hours ago. Bitstamp was hit the most by the debacle. The exchange reported a flash crash in the price of Bitcoin to $6,200. What happened? What’s next for Bitcoin? Can bitcoin recover from this? Analysts believe that it can.
The price of Bitcoin crashed below the $7,000 position losing a whopping 8% in just minutes. The downside shift managed to gain momentum and traction towards $6,500. However, things got interesting when prices came alive once more.
Bitcoin Price Prediction 2019: The Price of Bitcoin Pushed All Altcoins Back After Sell-off
Currently, the cause of the push remains unclear. The actual trigger for the move isn’t known. All major cryptos followed by losing ground quickly. The price of Bitcoin has once more been mentioned among a larger crypto market sell-off that slashed its price by $1,000.
Early in the day at 2:00 UTC, the price of Bitcoin dropped by 16.7% below $7,000. It stayed at $6,600 before rising again as a result of high volatility. It rose above $7,000 to its current position of $7,300, according to CoinDesk.
In the past 24 hours, the market capitalization of Bitcoin dropped less than $10 billion. However, the overall outlook for the price of Bitcoin remains positive in only a 7-day period. It is still up by $14 billion for the week amid factors like high volatility and market disagreements affecting BTC’s price.
Bitcoin Price Forecast: What Caused the Bitcoin Sell-off?
The main reason for the just passed BTC sell-off could be as a result of enormous sell-orders liquidating multiple stop-loss positions.
A sell-order of 3,645 BTC or $26.8 million on Bitstamp exchange was executed at 02:00 UTC today could have actually been the major cause of the price dip below the $7,000 position.
As of press time according to CoinMarketCap, the price of Bitcoin is changing hands at $$7,155.57. The situation is changing by the second and everything is back to normal.
Bitstamp is the patient zero of today’s reports on the price of Bitcoin, that a 5000 BTC sell order put the entire system in panic.
Speculators believe, the order was at a low price, which caused the market enter a correction phase and initiate a domino effect throughout the crypto space.
While the majority of exchanges weren’t affected as much as Bitstamp was, the impact of this price action, hit the exchanges hard, with many across the globe reporting losses of over $600 in the price of Bitcoin.
Bitcoin Price Prediction: What’s Next For the Price of Bitcoin?
Fortunately, this dump in BTC’s price, doesn’t appear to be the end for the parabolic bull run. The brief sell-off in the price of Bitcoin hasn’t changed BTC’s trajectory in anyway.
This is true considering the fact that the drop only lasted a few hours in the early hours of today. The price of Bitcoin retook the $7k plus position soon after the selloff caused a price drop. Bitcoin’s price bounced back quickly, thanks to multiple buy orders at $6. Hopefully the current bullish pattern remains on course and hasn’t derailed completely.