In today’s article we talk about Bitcoin briefly breaking below 9K and the markets are still comatose. Crypto.com says user growth is coming from products not token speculation and because Bitcoin dropped below 9k for the seventh time, traders are expecting big drops. We also go over the Current top cryptocurrency prices as well as a brief analysis on bitcoin to see if we can see something.
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The current prices of Bitcoin is at $9,096.82 down 1.67%
The current prices of Ethereum is at $226.63 down 2.15%
The current prices of EOS is at $2.35 down 1.29%
The current prices of Litecoin is at $41.09 down 1.47%
The current prices of XRP is at $0.174804 down 1.26%
As always this publication is sponsored by CoinCasso cryptocurrency exchange. So if you’re unsatisfied with your crypto currency exchange, like Coinbase that crashes every single time that the price drops or goes up, consider checking out CoinCasso in the link.
So as everybody knows this huge red candle stick on March 12th, black Thursday, Black Friday, Black someday. Then after that drop Bitcoin got on a spaceship and jumped straight up to 10K.
These first two Corrections stayed between the range of 8500 and 10K then we broke past 10,000 for a third time and have been slanting downwards ever since. I like to mark up key price points. So I have a price here at 8,000 and 9,000 and since April we’ve actually broken below this $9,000 barrier seven times. This one on June 23rd was a big concern because many people went short thinking the price would continue to go down but the whales trapped all the people going short and it actually Spiked back up to 10,000.
Right now we’re still testing this $9,000 barrier, but if it does drop below the next deep resistance point is going to be 8,000 because as you can see here, there’s literally nothing stopping the price between eight and nine thousand.
Despite the brief 3% afternoon drop, however, the cryptocurrency markets continue to stay eerily calm as volatility drops and traders continue to expect a big move. Bitcoin was changing hands at around $9,060 as of 20:00 UTC (4 p.m. ET).
Ether, the second-largest cryptocurrency by market capitalization, dropped 3%, trading around $225 as of 20:00 UTC (4 p.m. ET), according to Coinbase.
Bitcoin teased bearish traders Thursday with a 3% dip from $9,250 to $8,930 in afternoon hours. The move sparked a series of liquidations on BitMEX, spiking to $30 million after the afternoon price move, according to Skew. Liquidations had been fairly flat for several days on the largest bitcoin derivatives platform.
Despite the afternoon drop, spot trading volumes were relatively stable relative to the preceding few days. Coinbase volume, for example, just barely edged out its Wednesday’s volume, reporting a total of $78 million traded.
Despite the quiet price action, institutional investors continue to make moves in crypto markets.
Norwegian crypto investment firm Arcane Crypto is planning to list on Nasdaq Nordic’s alternative stock exchange, CoinDesk reported Thursday. Arcane plans to issue 6.6 billion new shares – each at half a U.S. cent – to fund a $32 million take over by Swedish firm Vertical Ventures, which is facilitating the listing.
The company’s chief disclosed the increase in response to questions from First Mover about this year’s market-dominating gains in Crypto.com’s CRO tokens. According to the company’s website, the tokens can be used for “cross-asset intermediary currency settlement for the native Crypto.com Chain.”
The CRO token has nearly quadrupled in price this year, the top performer among digital assets with a market capitalization of at least $1 billion. As reported by First Mover on Wednesday, the token was also the best performer in June.
Cryptocurrency analysts including TradeBlock’s John Todaro say the Hong Kong-based company has raised its profile through extensive marketing efforts, such as promotions and sponsorships, while pushing into new businesses that have attracted users and interest in the CRO tokens. (Last month, Crypto.com sponsored a portion of CoinDesk’s Consensus: Distributed virtual conference.)
Speculation is a hallmark of cryptocurrency markets and traders appear to be betting big on CRO in 2020, given its 273% gain since the start of the year. That’s well ahead of the second-best performer, Cardano’s ADA token, which is up 177%. Bitcoin, whose $170 billion market capitalization is about 75 times that of the CRO tokens, is up just 29%.
First Mover reached out to Marszalek to get his comments on the outsize gains. A spokesman sent Marszalek’s responses via email.
What would be your comment/explanation on why CRO has done so well this year in digital-asset markets?
As a rule of thumb, we don’t comment on price action. The overall market has done really well this year and there are plenty of digital assets that performed well. Our focus is solely on building great products for our rapidly growing customer base.
What would Crypto.com consider to be the primary achievements/milestones of June/the second quarter/this year/the past six months?
We’re the only crypto debit card program that is live in the U.S., Europe and Asia. This global rollout of a much-loved product led to rapid growth in our user base from 1 million in September 2019 to 2 million in early
May 2020. We’ve just hit the 3 million user milestone only two months after hitting 2 million.
The price of Bitcoin (BTC) dropped below $9,000 in a rapid pullback, falling by 5% in 48 hours. It marked the seventh drop to the $8,000s for the top-ranked cryptocurrency by market capitalization within a span of two months, since early May. Thus, traders have been concerned that repeated drops below $9,000 may weaken a critical support level.
Meanwhile, only $30 million worth of futures contracts were liquidated on the recent drop on BitMEX. The futures data indicates there exists a possibility of a bigger drop.
Why did Bitcoin fall to the $8,000s and what do traders think?
Bitcoin was due for a major price movement following nearly two months of low volatility. The direction of BTC’s next move was uncertain because BTC/USD was at a pivotal point.
Technically, if Bitcoin stayed above $9,200, a potential retest of $9,500 and the $10,000 resistance levels were plausible. But the continuous retests of the $9,000 support level may leave BTC vulnerable to a deep pullback.
One cryptocurrency trader “Cheds” noted:
“Breaking down through 9k, this latest drop invalidates a potential inverse head and shoulders reversal with a breach of the right shoulder. Same thing happened on June 25th.”
On June 25, the price of Bitcoin dropped to as low as $8,827 in a rapid fall, primarily triggered by a sell-off of several miners. Data from ByteTree suggests some miners have started to sell more Bitcoin than usual once again this time around.
In the past week, 6,619 BTC were mined and 6,809 were sold. Miners sold more Bitcoin than they mined, leaving a negative net inventory of 190 BTC.
The selling pressure that caused BTC to drop from $9,250 to $8,932 likely came from miners and the spot market. The futures market had a relatively weak impact on the large price drop of Bitcoin given the low amount of shorts liquidation on BitMEX.
Still, for the price of Bitcoin to drop to major multi-month support levels like $6,000, some traders believe that BTC would have to drop below $8,000. For example, Bitcoin trader Pentarhudi wrote in early June:
“Triple top on daily… bearish pattern. Will trigger at close below $8000 with a target to $6000. Either triple top or range lock.”
If the Bitcoin price continues to fall in the next several days to the low $8,000s, it would signify a triple top at a larger time frame. The two previous tops were achieved in October 2019 and February 2020, when BTC hit $10,500.
Two variables for BTC in the near-term
In the past several days, the price of Bitcoin has portrayed little correlation with the U.S. stock market. Throughout the past three months, however, BTC and equities moved in tandem for most of the time.
The breakdown in the correlation between Bitcoin and stocks indicates that markets are moving based on their respective dynamics. It may cause BTC to see sudden bursts of volatility once again, following a shift in the trend of recent weeks.
Market Wrap: Bitcoin Briefly Breaks Below $9K, but Markets Remain Comatose
First Mover: Crypto.com Says User Growth Coming From Products, Not Token Speculation
Traders Brace for Big Drop as Bitcoin Dips Below $9K for Seventh Time
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