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Flash Crash: Bitcoin [BTC] crumbles 11.35% as the speculative fingers point towards SEC’s Bitcoin ETF decision

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Flash Crash: Bitcoin [BTC] crumbles 11.35% as the speculative fingers point towards SEC's Bitcoin ETF decision
Source: Pixabay

Bitcoin [BTC], the poster child to all cryptocurrencies and the world’s largest cryptocurrency, quivers as the prices decline by massive 11.35% in a 24-hour period.

The decline in the prices is speculatively attributed by the community to the US Securities and Exchange Commission [SEC]’s recent decision regarding the Bitcoin Exchange Traded Fund [ETF].

Bitcoin, the long-standing cryptocurrency, is losing strength as the prices have broken major supports in the last two months. Red November was a bad start for Bitcoin, but December seems to have brought the doom upon Bitcoin as the price decreased by a massive 10% at the time of writing and was trading at $3,397.

In the one-day time frame, the prices for Bitcoin were holding steady at $3,850 just above the long-term support at $3,730, but the prices have fallen to a low that was last seen in mid-September 2017 just before the Bitcoin’s historical rally began.

Source: Trading View

The next support for Bitcoin can be seen ranging from $3,100 to $3,200, and prices so far look like they won’t be stopping their downhill ride anytime soon.

The cryptocurrency community, especially the Bitcoin eco-system, has been shaken and speculate the reason for the price drop to SEC’s decision that was published on Thursday regarding the Bitcoin ETFs.



The Bitcoin ETF that was proposed by money manager VanEck and SoldiX in partnership with CBOE BZX exchange has been delayed for the third time by the SEC in Thursday’s circular. SEC stated:

“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.

Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,10 designates February 27, 2019, as the date by which the Commission shall either approve or disapprove the proposed rule change.”

Altcoins are following the Bitcoin’s crash path and are crumbling one by one, as XRP has declined by 10.71%, Ethereum [ETH] by 16.01%, Stellar Lumens by 16.32% and in an interesting turn of events, Bitcoin SV has overtaken Tether [USDT] and Bitcoin Cash [BCH] to take the rank five for itself.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Bitcoin

Bitcoin price prediction: BTC prices primed for small correction that could evolve into a major correction

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Bitcoin prices primed for a small correction which could evolve into a major correction
Source: Unsplash

Bitcoin has been on a parabolic bullish rally for quite a while, which was followed by sideways movement of the price. However, at press time, the pattern formed indicated an imminent correction.

At press time, Bitcoin was priced just below $8,000, i.e., $7,979 and had a market cap of $141 billion. The dominance of Bitcoin had reduced as the rally ceased and stood at 57%.

Descending Triangle Pattern

Source: TradingView

As seen in the chart above, Bitcoin’s prices are enclosed in a continuation pattern, i.e., a descending triangle, which is a bearish pattern for Bitcoin. The volume for the same can also be seen decreasing over the course of the pattern, which affirms the above pattern.

When the pattern unfolds, the price will break out of the pattern and head downward; the only thing stopping the price from dipping is important resistance points. The price is likely to hit $7,820 level after the breakout, however, if the former level fails there are subsequent resistance points at $7,674, $7,529, and $7,256, which will be tested in that particular order.

A possible Double Top in the formation?

The above breakout is a short-term movement of price, however, on a longer time frame, the price is stuck in limbo, which explains the sideways movement. The parabolic rally was quick which is why most prominent traders, including Peter Brandt, Tone Vays, and others, are expecting a correction, that is overdue.

Source: TradingView

In the above chart, the way the price of BTC is moving suggests the possibility of the formation of a double top. However, the pattern is only confirmed after the price breaks the lowest resistance, i.e., $7,529. After which, the price will decline quickly into a correction that is being expected by most of the traders in the crypto space.



There is however a scenario where the price might just take off from here since it’s is undergoing a sideways movement, which can also be treated as an accumulation phase.

Conclusion

Crypto Twitter is quite bullish on Bitcoin and expects it to continue the rally, however, technical analysts and traders are awaiting a correction. According to Tone Vays, the price of Bitcoin will reach $4,500 before proceeding to a bull rally; Peter Brandt is also awaiting a pullback. No matter the outcome, it is better to tread carefully or stick to stacking sats.





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