According to the latest data, the price of Bitcoin dramatically slumped below $10,000. The sharp fall gave rise to the entire crypto market in a short time.
Bitcoin eased after two days of testing the crucial levels, while ETH significantly reduced by 10%.
Three factors bring bitcoin down:
- A strong dollar
- Whales taking profits
BitMEX liquidations were under $40 million when the Bitcoin’s price immediately dipped by 5% to $9,975 on Binance. Usually, when a significant price movement occurs, it causes over $100 million worth of futures contracts to get wiped out.
If we look through the future data, the selling pressure came from the spot market. There is low credibility that retail investors started to dump at above $10,500. Whales taking gains at $10,500, which has historically served as a multi-year resistance level for Bitcoin, is more likely. But, whales have been taking profits since BTC hit $12,000
According to Ki-Young-Ju, the CryptoQuant CEO, Miners send a certain amount of Bitcoin to exchanges repeatedly, so they already have a huge amount of Bitcoin. Whenever they decided to sell, it seems they move a comparatively substantial amount of Bitcoins to different wallets, and some of them are going to exchanges
THE rising USD value is causing Bitcoin’s fall
A common topic during the past two weeks was amplifying the U.S dollar. The dollar began to show signs of the rally after four months of fall. However, while the USD was increasing, the euro started to decline.
Bitcoin and gold are priced mostly by the USD. BTC traders are based in the United States, and the rising dollar’s value can weaken bitcoin’s momentum.
Moreover, the substantial drop in the price of Ether could have strengthened the downtrend. On September 5, ETH slipped under $360, to as low as sub-$340. As one of the traders said, if ETH falls under $360, $290 is the next likely target.