Bitcoin Dives, Erasing All Weekly Gains, Altcoins Bleed Too

In a sudden move in early Sunday hours (UTC time), bitcoin (BTC) price crashed around 10%, leaving traders perplexed. In the top 10, all coins, except tezos (XTZ), are down in double-digits.

At pixel time (04:50 UTC), BTC trades at c. USD 8,534 and is down by 13% in a day, erasing all weekly gains (-8%) and trimming its monthly gains (21.5%)

BTC price chart

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BitMEX XBTUSD Liquidations

At the same time, ethereum (ETH), XRP, bitcoin cash (BCH), litecoin (LTC) are down by 12%-13%, also dropping by 10%-14% in the past week.

Bitcoin dominance, or the percentage of the total market capitalization, has slipped less than one percentage point, going below 66%.

The market crash happened two days before the third Bitcoin mining reward halving.

"We clearly see bitcoin-led strength, as the large-caps posted a 5% gain, while mid-caps — comprised entirely of altcoins — are actually down on the week. But the small-caps — the most speculative of the bunch — also posted strong gains," Weiss Ratings analyst Juan Villaverde noted earlier this week, stressing that when small-caps lead the market, investors are declaring a "risk-on" environment.

"This points to speculative buying ahead of bitcoin’s halving, which centers around bitcoin itself, as well as the most speculative names in the industry, represented by the small-caps," he added, urging to prepare for volatility in both directions starting as early as Monday. It seems that it started one day earlier.

Reactions

The halvening is being priced in.

— eric.eth (@econoar)

@pierre_crypt0 Annihilating leveraged longs. Now going up

— Brian (@CaramelKidder)

i have bids that got filled that shouldn’t have gotten filled. LMAO. probably going to trade out of them and sit till halving now.

— I am Nomad (@IamNomad)

@ThinkingUSD instructions unclear opened 100x long

— hundo (@BitcoinTo100k)

Confirmed ✅ https://t.co/L029qEQe3m

— A v B (@ArminVanBitcoin)

Wave D completed right on schedule.#

— Todd Butterfield (@WyckoffOnCrypto)

@ViktorBunin When you get to 11 figures you just want to feel something.

— Richard Burton (@ricburton)

@Hipster_Trader Couldn’t buy on @CoinbasePro or @coinbase honestly kind of ridiculous I couldn’t take advantage of… https://t.co/57376wAjpi

— S. Lazoja (@SLazoja)

There’s a way to adapt any fact pattern to your worldview and narratives. Sometimes it will be very convoluted, but… https://t.co/QqOjgbLvhX

— Pierre Rochard (@pierre_rochard)

@AthenaBank @cz_binance @APompliano You guys didn’t read the contract did you? The deleveraging happens on a down m… https://t.co/J3Ar8DNJjj

— glimmery (@Glimmerycoin)

Source: cryptonews.com

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