Bitcoin experienced a sudden collapse yesterday that knocked over 11% off its price and caused yet more pain for alts, with double figure falls experienced among almost all tokens. The move came as a surprise to many, given that BTC had recovered well from Monday’s whale-induced drop and risen to $13,200, it’s highest level since June 27. Hitting this figure precipitated an immediate $700 red candle, which was followed by numerous selloffs until BTC finally found some stability at $11,200.
Drop Doesn’t Eradicate Bullish Vibes
The drop had the usual effect within the community, prompting a variety of bullish and bearish comments and charts, although the general sentiment was still that of a continuation upwards once the correction was done. Predictions as low as the $9,000 range began to make the rounds, which would potentially allow us to close the last remaining CME gap, indicating an almost definite bottom.
if this was a flat on btc which was to take us lower, momentum should have kept going, but instead we have stalled and bounced and the decline from yesterdays highs is looking like an abc now instead.
i’m now long ?♀️ pic.twitter.com/iPBsAIzTWm
— ??BenjaminBlunts?? (@SmartContracter) July 11, 2019
My next target for Bitcoin is $9,000. $BTC pic.twitter.com/GIrQoxobNb
— Crypto Hedge (@TheCryptoHedge) July 11, 2019
If you’re feeling emotional after a move like this you’re likely risking too much, didn’t pay yourself on the way up or just need to zoom out.
As long as we hold the grey I’m not worrying. Good RR for a long here or look short if we lose the block down towards $10.8k. pic.twitter.com/iGXva6Exmc
— Mayne (@Tradermayne) July 10, 2019
Sentiment Remains a Great Guage
There were some that predicted the drop, with their decisions driven mainly by sentiment. In the absence of clear technical bias, they used the idea that the market still felt greedy, which was their cue for a leg down to reset the bias. This ties in with the reading from the Crypto Fear and Greed Index which gave a reading of 83, suggesting that there was more chance of imminent downside rather than upside, which proved correct.
Everyone is euphoric again! ?
Closed most of my long position and hedged. $XBT pic.twitter.com/yZsvjMk62v
— Livercoin (@livercoin) July 9, 2019
Alts continued to suffer with the move, with the likes of EOS crashing another 25%, causing pain to all holders, including some famous ones:
I Have Powerful Friends In Congrest And I Will Not Stop Until Every $ALT Dev Is Put On An Island And Bombed With Phosgene Oxime
— Carlos Matos (@CarlosMatos80) July 10, 2019
Those looking to pick up alts at the bottom will be licking their lips, but with the potential of a little more downside to come with BTC it may be wise to hold fire for now. However, should BTC consolidate here for a while instead of making any further rapid moves we could finally see some movement as alts gain in confidence…although we’ve heard that somewhere before.
