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
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.
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)