Bitcoin takes ~10% plunge amid massive 25,000 BTC movement
Someone was moving serious money before and after today's market drop.
The cryptocurrency markets took a dive today without a clear cause. There was a clear correlation though, with 25,000 Bitcoin worth some $200 million arriving on Coinbase right before it plummeted, and about the same amount departing after the carnage.
It's not clear whether the Bitcoin movement was related to the price change, but the timing seems auspicious. No clear difference in Coinbase prices (blue) seemed to emerge relative to Bitfinex (orange) at the time.
Looking at the bigger picture of the last few months, it's clear that this shows a break of sorts in the trend of rising prices over the last few months.
The 50-day moving average (yellow) and 200-day moving average (purple) have been crisscrossing throughout the rise, but now the 50-day has crossed under the purple with vigor. Basically, when the yellow line is above the purple it means Bitcoin is outperforming itself, and when it's below the purple it means Bitcoin is underperforming against itself.
It's now bopping around the $8,000 price range after bouncing back from the immediate fall to $7,750. Although it holds no special significance, which direction it goes from $8,000 might serve as some kind of pivot point.
But in the bigger picture, this drop is still just a dent on Bitcoin's rise in 2019 so far and a lot would need to go wrong for it to keep plunging more.
Plus, one of the trends we've seen in the last few months is an eagerness to buy every big dip, and this also tends to be the trading pattern favoured by the big funds that are increasingly entering the space. Without some serious downward momentum, it's difficult to see Bitcoin plunging all the way back to $3,000 or $4,000.
In summary, the apparent end of the crypto winter put a spring in the market's step, and it will take a lot more selling than this to make it fall further.
Disclosure: The author holds BTC, BNB, ATOM, IOTA at the time of writing.