Bitcoin (BTC) price attracted countless investors with its sharp rise to over $13,600 in the last days of June. However, this growth was sharply interrupted by a correction, and then once again on June 30th by one of the so-called crypto whales. The whale in question caused a massive price drop after placing a 20,000 BTC short order.
The move announced to the entire market that a crypto whale expects that the Bitcoin price will plunge in the near term. The $200 million-large bet was more than enough to discourage investors, and the price indeed started to drop, currently being at $10,972, after dropping by 8% in the last 24 hours. At the same time, the total crypto market cap dropped by as much as $20 billion within hours.
Bitcoin crashing down: Is the recovery possible?
It wasn’t long before crypto analysts and experts started commenting on the move. One of the well-known analysts, Josh Rager, stated that it is more than possible for Bitcoin to drop below $10,000 if the price breaks the $11,500 support level. Rager compared the situation to a drop that was seen earlier this year, in May. After seeing massive losses, Bitcoin remained dormant for weeks.
$BTC: Bitcoin has pulled back near 26% (similar to May '19) before it consolidated for weeks & continued up
It's not often we get two 26%+ pullbacks so close together in bull market
So it's a real buying opportunity if BTC closes below $11,500 tonight & we retest the $9k/$10ks pic.twitter.com/hMYg2CMHde
— Josh Rager ? (@Josh_Rager) June 30, 2019
Both drops took BTC down by around 26%, and Rager points out that it is not often that two drops of this size occur so close to one another, and during a bull run, at that. As a result, he believes that BTC might keep dropping, potentially down to $9k/$10k in days to come.
So far, BTC went down from $11,900 to $10,765, only to climb up by slightly over $200 in the last few hours. However, while BTC recovery might already have started, many altcoins were significantly impacted by the original correction. The correction saw the coins’ prices drop against BTC and USD alike.
The strength of the impact was quite significant, which can be seen by looking at Litecoin’s (LTC) recent behavior. The coin, which was growing by 5% against the USD on June 30th, saw a 5% drop on July 1st. Other among the top cryptocurrencies, including EOS, Binance Coin, Bitcoin Cash, and even Ethereum have all dropped by over 5% on average in the past 24 hours.
Bullish catalysts are likely to preserve the market
When it comes to Bitcoin’s drop, experts believe that it was mostly caused by strictly technical factors. A large amount was used in a short contract, which caused the rest of the investors to panic sell. As a result, the coins crashed. In other words, there is no real reason for the market to continue dropping in the long term, and the overall sentiment is still quite bullish.
Furthermore, some events that are already scheduled for the second half of 2019 — such as the opening of Bakkt and Fidelity — will likely cause the prices to rise. In addition, the retail interest in crypto is constantly growing, as well, which might lead to institutional interest.
Fundamentally, many bullish catalysts still ahead: Fidelity, Bakkt, Ameritrade, Etrade. Bakkt would begin testing its futures Jul/22. Retail interest is steadily climbing, and so is institutional interest, which has been piqued due to $BTC's performance and macro narratives. pic.twitter.com/vSXJglkqyO
— Alex Krüger (@krugermacro) June 29, 2019
With all of this happening more or less at the same time, analysts remain quite positive and bullish for the near future of the crypto sector.
However, it is likely that traders might remain cautious in the short term, due to such a sudden drop in BTC price.
The market might be maturing
While the market seems to still be very much dependent on Bitcoin, some traders appear to be convinced that many altcoins are starting to decouple from BTC. This is not something that occurs when the bear market is anywhere close, which is yet another reason for investors and traders not to panic.
— Satoshi Flipper (@SatoshiFlipper) June 30, 2019
If the correction ends up lasting for a longer period, altcoins will likely struggle between following BTC and following their own path, which might cause their prices to sharply move up and down. As for Rager, he believes that the future is bright no matter what happens. If the market recovers, the prices will keep surging. If the correction extends, it will provide excellent buying opportunities for traders and investors.