Bitcoin just broke down below the $7000 mark touching $6896 margin. This may be the effect of the volatility in the cryptocurrency industry in the last few weeks. This may also result in a further dip in the BTC price. In fact, the price has reached the $ 6,884 mark while writing. Along with Binance, other exchanges are also following the trend lowering down the price below $7000 mark.
Bitcoin breaking the $7000 margin
Bitcoin held the $7000 mark for almost a week before diving down to $6820 within just 15 minutes. Data site Skew market suggests that $40 million worth of BitMEX longs were liquidated in this sharp fall. the fall was so quick and steep that the analysts are still trying to find the main cause. Since the end of November, there has been a typical head and shoulder pattern in the BTC price which is definitely a bullish sign.
Taking the other currencies down
This price drop is equally affecting the other crypto players in the market. Where the Ethereum price is down at $130 today, the XRP is in a danger margin of $0.20. At the same time, Litecoin and EOS experiencing a loss of 10%
What causes this dip
Famous Digital Asset Trader Hsaka mentioned that, just before the Bitcoin price fall, Ethereum too fell down 3%. There is a high chance that Bitcoin is following Etherum’s price movement. This kind of trend has been witnessed in history.
Minutes before the dip, Bloomberg shared a piece of news revealing the PlusToken Ponzi scheme is dumping thousands of coins per month on the open market. This scheme has managed to accrue billions worth of Bitcoin and Ethereum and other tokens over the course of a year. This action may trigger the scam operators to dump more coins in the open market to lock profits before getting caught.
Well in the past quarter Bitcoin has experienced about 300,000 and 400,000 transactions per day with a falling trend. But the value ($) of the Bitcoin transactions remained constant at around $1 Billion per day.
Currently, the $7000 is acting as a key level but there is a chance that the price may reach as low as $6500. Well ironically BTC has witnessed its all-time high near $20,000 on the same day in 2017.