Cryptocurrencies across the board were still licking their wounds this evening after a brutal weekend that battered any clear signs of a storming bull market into submission.
Bitcoin – despite soaring on Friday – dramatically tumbled by $500 after the hard work of a steady build-up across the psychological $10,000 line was undone in a matter of hours.
The world’s most dominant cryptocurrency had been basking in Valentine’s Day affection with a surge from $10k to within kissing distance of $10,400 – a robust-looking move which provoked plenty of excitement among investors heading into the weekend.
Others followed suit, with altcoins (alternatives to the market-leading bitcoin) finding a renewed energy. Fans of Bitcoin Cash, Ethereum and XRP were given cause for cheer as they looked to build towards new highs for the year.
Ethereum (ETH) set out from base camp on Friday at around $260, ascending to oxygen-draining heights of almost $290 by midnight.
Alas, the glasses were going straight back into the cupboard before Saturday night had barely a chance to get going.
It began with one or two minor tremors earlier in the day, indicating the geological state beneath the crypto world’s feet was not entirely comfortable. Bitcoin’s siege of $10,400 retreated and spread out across $10,200. Ethereum, XRP, Bitcoin Cash, Tron, Litecoin etc all copied their master’s footsteps.
Optimistic analysts suggested the slight rubbing of tectonic plates were merely digital assets coiling up beneath the crust in readiness for an eruption that would catapult the crypto world into its next phase of bullish action.
The plates were moving alright. In fact, they parted enough to swallow up huge chunks of assets and trades, leaving crypto followers scratching their heads.
Aftershocks were felt across the board. Bitcoin suffered, but the high-flying altcoins were much closer to the epicentre. By this morning, Bitcoin Cash (BCH) had dropped almost 14%, Ripple (XRP) 12%, Ethereum (ETH) 9%, Litecoin (LTC) 13%, Tron (TRX) 12% and EOS Token (EOS) 9%.
Dusting themselves off today, the charts still looked hungover. Tonight, Bitcoin finds itself clinging above $9,600 – albeit not a bad arrest given that it looked like a level of resistance there had forgotten to kick in when BTC began slipping to $9,550.
Altcoins too don’t look ready to step back in the ring just yet. Although injuries have been treated and the recovery process is active.
The cause of all this chaos? Well, it looks very likely that a single transaction from a highly wealthy individual – known in the markets as a ‘whale’ – created the weekend’s meltdown. Essentially, a movement of an enormous amount of money by one person carved a wedge out of the crypto markets while, at the same time, netting them somewhere in the region of $10m.
The positive traders should take heart, though. Until this weekend, cryptocurrencies were on an upward path. There is still enough collective force within them to bridge the chasm that was created and continue that trajectory.
History too looks to be on Bitcoin’s side. An almost identical pattern and correction occurred last April as a gruelling 11% pull back was swiftly followed by a massive jump.
This current cycle in the odd world of cryptocurrency may yet not be a war between bull and bear, but a battle between optimists and pessimists.
LATEST BITCOIN PRICE ANALYSIS: https://coinrivet.com/latest-bitcoin-price-and-analysis-btc-to-usd-48/
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