After a fruitful couple of days for the market, the dreaded pullback has finally hit. In the last couple of hours, the market has been hit hard by the bears and has since seen a significant drop in prices. Bitcoin has dropped from highs of $8,000 and at the time of press has slipped further below the $7,500 mark to $7,281.
This has marked a drop of more than 8% from the last 24 hours. Over the last 24 hours, the market leader has dropped as low as $7,100 before finally finding support and bouncing back again. For now, remaining above the $7,000 support position is crucial.
Despite this significant drop, the coin remains bullish with the recent drop a mere pullback after a dramatic surge in the last couple of days.
What Triggered The Freefall?
According to reports, the plummet comes in the wake of several thousand bitcoin sell orders on crypto exchange Bitstamp. For analyst and product developer at Gnosis, Eric Conner, this is exactly the reason that triggered the sell-off. He stated:
“For reference, someone put a 5,000 BTC sell on Bitstamp, which BitMEX uses for 50% of its feed and it appears to have tripped some algorithms which made a cascade on BitMEX,”
While the sell is usual in the market, many traders and enthusiasts were hoping that given the market is on a positive trend, there would be a quick buy-back, keeping prices up. This was not the case and the delay could have seen prices drip. However, the recent plummet might just have given market bulls a chance to reaccumulate and make another dashing move over the next couple of days.
With the bottom in and the only way now for prices looking like up, this dip could be the chance for those looking to accumulate or re-accumulate to buy before the market can regain momentum and forge ahead in its previous trend. If this is the case, the next momentum should see prices breach the $10K position.
Altcoins Also Taking A Dip
Altcoins have also in the last couple of hours been taking a beating following in the trend of Bitcoin. In the last couple of hours, losses among top altcoins have spanned from 5% to 15%. From Ethereum and XRP, two of the largest altcoins, they have dropped by 12% and 11% respectively at the time of press. The total market value now stands at a little over $228 billion.