Why is Bitcoin crashed today?
After weeks of mostly sideways directed movement is like the Bitcoin price this Morning and has already swept the Rest of the crypto market and a bloodbath left behind. Although it has baffled many experts in the industry, is bitcoin’s recent price movement is another evidence that the Cryptocurrency is not tied to predictive indicators used in conventional analysis.
The recent low point of the prices has occurred in spite of positive developments in the industry as a whole, be it the introduction of Facebook’s Libra. The anticipation of the Bitcoin Halving in the next year or the containment of the regulatory setback, which marked the beginnings of Bitcoin code. Even the principles underlying Bitcoin, Hash Rate, and transactions per second remained constant. Also, the Mining Difficulty for the production of Bitcoin has dropped this month.
Adam Vettese, an Analyst of the trading platform eToro takes in a recent article (freely translated):
After the investors have taken in the last three months of a harder run, you need to weigh out your options, with its own platform, eToro continues to experience increased activity at the current price.
The rapid decline in the Bitcoin price this Morning seems to confirm Vetteses Thesis of increased activity. Within six minutes, the Bitcoin price lost 4.2% of its value (about 330 $) and was at the end when 7252,32 $ per coin.
Dmitriy Berenzon, research partner at Zenith Ventures, a venture Fund focused on Blockchain, says that some whales have made gains realized (freely translated):
There are many short-term players on the market and it is your task to earn money. I think that the price crash for me in case of risk of volatile assets is nothing Surprising in this.
he said, and added that the foundations, whether they are related with data or development activities, were more important.
If you look at the On-Chain metrics, I do not believe that something Special is happening.
Investors and traders looking for a quick profit, is generally considered to be culprits for a decline in the rate development. But from the price decline this Morning has updated another culprit out Krista: The Bitcoin Miner. Weak Miner or Miner without the economies of scale go out of business if the price of Bitcoin collapses, because it is unprofitable to operate expensive mining hardware. You may have the price of pain for Bitcoin investors tightened, describes statisticians Willy Woo.
He worked out his case in a series of Twitter Posts:
NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner, capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event. pic.twitter.com/20748Zv8aQ
Willy Woo (@woonomic) November 18, 2019
The halving of the offer in the next year (Bitcoin Halving) is the next big event, that in the case of Bitcoin is imminent. Analysts have led to the rise in the Bitcoin price this year back. But that could be a mistake. In his Twitter Post, Woo said that the price action for Bitcoin will not show the same price movement, so that the short-term trend will remain bearish.
Zenith’s Berenzon describes that the correlation between the price action for Bitcoin, and the expectation of the trader is a “interesting game theory question to be” because one of the other feeds.
Alone the expectation[of price increase after the Halving] will drive up the price[before the event] in the height,
he said.
If you look at the data, it has been shown that the highest increases have taken place 12 months after the fact of a Halvening event.
Consequently, a more in the next few weeks, Downward or sideways trend.
Featured Image: Wit Olszweski | Shutterstock
