Bitcoin (BTC/USD), Ethereum (ETH/USD), Ripple (XRP/USD) Price, Analysis and Chart:
- Bitcoin drops $10,000 from its all-time high.
- Sell-off being slowly erased as buyers return.
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Bitcoin (BTC) volatility soared further over the weekend when a wave of selling sent the cryptocurrency market crashing, with coins showing heavy double-digit losses. Bitcoin fell from Friday’s all-time high around $42,000 to just over $32,000 while Ethereum (ETH) fell from $1,350 to just over $1,000 before ticking marginally higher. According to data from CoinMarketCap, trading volume in Bitcoin surged with over $100 billion changing hands in the last 24 hours.
This weekend’s sell-off comes after weeks of hefty gains in the cryptocurrency space, with Bitcoin making fresh all-time highs seemingly on a weekly basis. We have warned in recent updates that Bitcoin volatility was at extreme levels, and this remains the case, and traders must remain wary.
The UK Financial Conduct Authority (FCA) has just released a timely update on cryptoassets, warning that ‘investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money’.
The daily chart shows that Bitcoin has broken the recent series of higher highs and higher lows and BTC remains vulnerable to further sell-offs. All three moving averages, however, remain positive, while BTC is out of overbought territory and at its lowest CCI reading for nearly one month.
Bitcoin (BTC/USD) Daily Price Chart (June – January 11, 2021)
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Retail trader data show 80.70% of traders are net-long with the ratio of traders long to short at 4.18 to 1. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Bitcoin-bearish contrarian trading bias.
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What are your views on Bitcoin (BTC) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.