Owing to extremely overbought conditions the ‘cryptocurrency king’ fell by over $1,700 after it briefly basked in the glory of the $8000 level a few days ago. This happens to be the biggest intraday price drop since the middle of January last year. The downturn of bitcoin began today from an opening price of $7,880 to a seven day low of $6,178 during Asian trading hours earlier today. Although Bitcoin has recovered more than 50 percent since the low hit earlier today, live updates of all active cryptocurrencies still show bitcoin sitting in the red zone today at $7234 down by over %8 percent (as at the time of this writing) via coinratecap data.
The other notable intraday price drop last year was when Bitcoin nosedived by $2,171 from the opening price of $11,393 but it recorded $11,191 by the end of the same day almost assuming its former position.
With a price drop of such a popular digital currency brand, it is inherent that a sell-off would follow as many have been willing to buy-in but awaited a much lesser price. Blockchain Week NYC and Consensus 2019 events in view may have fostered BTC’s recent rise as many speculated. In another vein, these speculations could have been a factor behind the recent nosedive. From earlier this week, the Relative strength index (RSI) had been reflecting extremely overbought conditions with a near-90 reading. BTC’s repeated failure to hold onto 10-month highs above the $8000 level, however, made buyer exhaustion more evident, just as in the last couple of days. A tweet by @WhaleCalls (an account powered by a bot ) noted that huge profit taking (Bitcoin/Usd) occurred in the early hours of Friday morning and Major sales order rumors spread; this could have been a trigger for the price drop.
In eventuality, bitcoin may continually head downwards are a slow rate, probably readying itself for a significant upward shoot.
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