Since Bitcoin was rejected at the $9,000 position late last week, the digital asset has had a troubling weekend. However, the slow drop during the weekend and at the start of the week has culminated in the early hours of Tuesday.
Through the weekend, Bitcoin dropped from highs of $8,800 to around $8,500 before the dramatic plunge began early today. In the early hours of Tuesday, Bitcoin began plummeting dropping by as high as 9% to set a new low of $$7,900.
The drop below two key support positions, $8,500 and $8,000 have sent shock wave among traders and investors, but as noted earlier by some analysts, the pullback was expected sooner than later.
At the time of press, Bitcoin has successfully bounced above its recent low of $7,900 and is exchanging for $8,013 marking an over 5% drop in the last 24 hours. The drop has seen Bitcoin wipe out over $10 billion of its market cap and over $20 billion in the market’s total cap. For many traders, the question remains, what triggered the plunge? Additionally, Where next for Bitcoin?
Around 25,000 BTC Transferred To Coinbase
According to reports, just shortly before Bitcoin prices plunged, over 25,000 BTC was transferred to Coinbase. This has been attributed as the reason why prices plunged. As we reported earlier, whales are potential makers or breakers. In the last couple of weeks, they have been makers as they continued to buy. However, as they chose to cash in, they are bound to stir up prices and cause panic.
The BTC transferred from an unknown wallet and into the Coinbase wallet was valued at around $210 million. When the transfer was made, many traders saw it as a sign of a whale jumping ship which meant that the price prospect of Bitcoin was not good. This quickly turned into a sell-off and prices plummeted.
Analysts Still Optimistic
The correction seen in the last couple of hours comes as no surprise and for many analysts does not deter Bitcoin from its recent bullish trend. Recently we reported that every time Bitcoin has undergone a 30% pullback, the asset has gone on to rally by an average of 153%. Is this the pullback? Can we expect a remarkable resurge in the days to come?