Bitcoin has once again dived below $9,000 this year. The reasons for the drop in bitcoin prices are linked to several factors. In the following article we will try to explain a few potential clues that will clarify the secret of the collision of the most popular cryptocurrency. At the time of writing this article the BTC price dropped from $9274 to $8840.
Output of whales
The reason for the drop in bitcoin price can be found in the outflow of whales from the stock exchanges. Friday’s price dump, at least in terms of order books, signals a gigantic pressure to sell on the owners of the most prosperous portfolios. It is very possible that the bitcoin giants decided to realize part of the profits from October increases.
As Gabor Gurbacs, a mathematician and analyst at cryptocurrencies, points out, the order books on the stock exchanges are leaning towards a bearish side. He also stressed that despite this, the situation may turn around very quickly.
#Bitcoin order books look out of balance now to the bearish side. Don’t forget, momentum can snap back quickly. pic.twitter.com/LKeNcssl34
— Gabor Gurbacs (@gaborgurbacs) November 8, 2019
Underutilisation of BTC
Bitcoin transactions seem to have been extremely sluggish in the last week. This has indirectly dulled price changes. Unused BTCs have inhibited the possibility of dynamic price changes. All transactions in the most popular cryptocurrency network may signal an increase in volumes.
1/ This week's #onchain market observations:
Core #Bitcoin on-chain metrics are at monthly lows (adjusted transaction volume, exchange inflows, active addresses).
Healthier levels are required to set the stage for the next bull market.https://t.co/Otgo2bPILp pic.twitter.com/9Q9zkWCRxP
— glassnode (@glassnode) November 8, 2019
Bitcoin is the only crypto-currency that has a strong correlation between the number of transactions in the block chain and the price change.
Bakkt speeds up!
The futures platform has recently seen an increase in contract sales. The total value of contracts sold is approaching 1000 BTC within 24 hours. This is still a small value in comparison to the whole cryptocurrencies market Nevertheless, the reasons for the bitcoin price decrease may also be located here. Data from the Bakkt platform are presented below.
∙ Today's volume so far: 970 BTC ($8,419,600)
∙ Last traded price: $8,680
∙ Trading day progress: 34%
∙ Current daily Bakktarget™: 2027 BTC ($17,594,962)
— Bakkt Volume Bot (@BakktBot) November 8, 2019
BTC price in dangerous waters
An important element of the price survey of the most popular cryptocurrency is the analysis of graphs. Twitter analyst BitcoinCatz noticed:
“I don’t know why nobody talks about it, but bitcoin was in the Death Cross formation on a daily chart. The last time it happened was in March 2018. After that there was a significant drop in price.
$BTC Death & Golden Cross
Don't know why nobody is talking about it, but #Bitcoin death-crossed on the daily, the last time it happened was around March 2018. After the death-cross we had a significant drop in price. After the golden cross in April 2019 a significant price jump. pic.twitter.com/ImUF6L5F1Z
— ₿itcoin Catz? (@BitcoinCatz) November 8, 2019
Exiting this zone will require a lot of organized, big effort.
Weak nerves leave the market
Obvious retest after a 40% pump. Waiting for a retest of 8400. $BTC needs to cool down. Let’s remove all weak hands before the pump. #crypto #cryptotrading pic.twitter.com/M0JavAaM7N
— The KONG (@CryptoKong4) November 8, 2019
This theory is supported by the popular The KONG. He claims that the October increase will test the level of $8400. A 40% change in the BTC price cannot remain unresponsive. It is at this point that most of the weaker cryptoplayers should once again leave the market to prepare bitcoin for a long-term price increase.
Bitcoin variable is
Such a paraphrase is best described as the king’s cryptocurrency. It is hard to say which of the above causes has the greatest influence on the price decrease. What is certain, however, is that all these elements play an important role in shaping the current market situation.