In the last 24 hours, Bitcoin unhanded 4.9% of its price, dropped another resistance level and at the time of press is trading close to $8,722. This sudden steep decline started at 12:42 pm UTC and hit rock bottom at $8,575.
Unusual selling pressure has been building up in the market. Most probably, it is the weak hands who are creating pressure. As soon as Bitcoin erased its $10,000 price mark, the selling pressure increased.
Underlying sentimental correlation
Although BTC and traditional markets have no fundamental tie-up, a sentimental concurrence has always existed. Over the last 4 days, S&P recorded a major retracement that wiped off the gains of the last 2 months. In total, the S&P has lost $2 Trillion in just four days.
Undoubtedly, the catastrophic losses in the traditional market are scaring away the crypto investors as well. In the current blood bath, the crypto market cap lost over $30 billion last week.
Is a bounce back possible?
Bitcoin opened the year 2020 at a price mark of $7,221. Since then it has crossed some major resistance points to touch $10,500. And the market still looks optimistic because of the halving approaching. We had dropped hints of a retracement before the halving bulls start roaring in our previous article about halving approaching sooner.
It looks like we might see Bitcoin touching $8,200 in the next couple of days.
Looks like we will hit $8,200 before $15,000!#Bitcoin pic.twitter.com/Czz3et44lB
— Altcoin Buzz (@Altcoinbuzzio) February 26, 2020
We believe this is where it might build a strong buying interest. Therefore, $8,200 might turn out to be the next immediate support. So be ready to witness a quick bounce back.
Whales are just moving: Don’t Panic
At 4:57 am UTC, 47,452 Bitcoin worth 414,953,919 USD were transferred from a Bittrex to an unknown wallet. And the tweeps started speculating all kinds of unfortunate events. A hack, a sell-off or an exit scam.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 47,452 #BTC (414,953,919 USD) transferred from #Bittrex to unknown wallet
— Whale Alert (@whale_alert) February 27, 2020
However, it could have been Bittrex moving a part of its BTC holding to a cold wallet too. They do it quite often.
On Feb 19, someone had moved 47,852 BTC from an unknown account to the Bittrex account.
47852 $BTC ($484,766,850) transferred from Uknown to Bittrex
Timestamp: 02/19/2020 04:20:14
— Forecasty (@forecasty) February 19, 2020
So it strongly indicates a whale is just moving their BTC. But whether it is Bittrex itself or not is yet to be confirmed.
Peter Schiff sneers at Bitcoiners again
All this gave gold bullion Peter Schiff an opportunity to make some more noise. Once again, Schiff ridicules Bitcoin’s superiority to gold and an investor’s safe haven. Schiff calls Bitcoiners fools and the entire belief in Bitcoin complete “nonsense”.
It seems his confidence flared up as gold is up by 3% in the last 5 days.
To this degrading tweet, HEX founder Richard Hearth retorted in the best possible way. Richard sneers back and states since bitcoin started trading it is up by 16,779,504% but gold is up only by 38%.
Your gold bag is up 38% since bitcoin started trading. #Bitcoin is up 16,779,504% Why did all the fools do better than you? By the way, your gold bag is down 14% from 8.5 years ago… pic.twitter.com/ZV38p7aPJB
— Richard Heart: HEX.com did 116x price!🚀M⬣⬣N (@RichardHeartWin) February 25, 2020
Gainers are the new losers
Tezos (XTZ) and Chainlink (LINK), are the two coins that performed exceptionally well in Jan 2020. But the recent retracement seems to be impacting them heavily. Tezos retraced by 22.0% and Chainlink lost 15.4% of its price value in the last 7 days.
This might be one-time crypto proponents must take Warren Buffet’s advice on stocks. “Don’t buy or sell”.
Warren Buffett says ‘don’t buy or sell’ on the headlines as coronavirus puts stocks under pressure https://t.co/DLnxbkeifq So its simply very good advice from Oz, dont panic
— Tiffany Chase Nair (@TiffanyCNairLTU) February 25, 2020
What are you planning to do with your bitcoins and altcoins? Do share your opinion in our comments section.