Bitcoin and the wider crypto markets experienced a bloody weekend as $40 billion was wiped off the market cap, erasing all of February’s gains. Bitcoin experienced a 10% drop, with most other big and medium cap alts suffering the same fate, with PlusToken and global markets blamed for the red weekend.
Bitcoin Loses 12-week Support
Bitcoin had rallied from $8,400 to $9,200 and was looking set to continue its uptrend when a crash began on Saturday that saw it drop to $7,680 late on Sunday, causing it to lose its 12-week bullish support in the process:
Reasons for the crash were not short in coming, with some claiming it was simply a delayed reaction to other global markets selling off last week in the wake of the escalating coronavirus crisis.
Others put the selloff down to the fact that the PlusToken scammers sent ₿13,000 to a mixing service on Saturday, which is never a good sign:
~13k in new PlusToken mixer deposits in last 24 hrs.
Almost all previous mixer deposit change has entered mixing, confirming my theory.
Distributions still on/off. Much slower than September and November.
New report and full sit rep imminent. pic.twitter.com/vwrBuVk272
— Ergo ∴TxIDs Or It Didn’t Happen∴ (@ErgoBTC) March 6, 2020
Just three weeks ago we suggested that the PlusToken scammers could jam a stick in the bull run’s wheels, and there is every indication that this could have indeed been the case – since that day, Bitcoin has trended consistently down, from $9,600 on February 20 to this weekend’s lows.
Of course, it could be a coincidence that on February 20 they moved ₿12,000 between wallets, then moved ₿13,000 to a coin mixer just days before a huge Bitcoin selloff, but for many it is too close a call to be coincidence:
Never long when plus token moves bitcoin
Never long when plus token moves bitcoin
Never long when plus token moves bitcoin
Never long when plus token moves bitcoin
Never long when plus token moves bitcoin
Never long when plus token moves bitcoin— Jacob Canfield (@JacobCanfield) March 9, 2020
Market Remains Fragile
Where Bitcoin goes from here is almost impossible to tell right now. Assuming the selling is done for now, the market will need to settle down for a couple of days before a new direction can be posited.
Of course there are those who are actively buying when there is blood in the streets, but if indeed Bitcoin was reacting to sentiment surrounding other markets then there could still be some more downside to come.
For those not currently in any position, there is no harm in waiting to see where the markets go over the next 48-hours before taking a position, especially if we still believe in the fundamentals of Bitcoin.
