Skip to main content

Bitcoin price recently dropped by more than 3%  in less than one hour before rising to $13,350. This caused a mixed reaction in the crypto community. People are trying to offer different explanations for the incident.

What leads to the quick surge? 

Normally, the traders view the $13,300 to $13500 as the main resistance range. Additionally, the futures and the options markets are neutralizing. Lastly, weekend trading is, in a way, contributing to the increased volatility.

The assumed $13 300 – $13500 range is viewed as the bitcoin’s resistance zone in the short run. Before the drastic drop in the price happened, Bitcoin had experienced a rise. Bitcoin as the leading cryptocurrency moves swiftly to the areas of interest which sell them. While the miners moved to Bitcoin exchanges. In the past week, data indicates the sellers were selling more than what they were mining. Thus, Bitcoin had to see such a sharp surge in the critical resistance zone though the sellers refuted the occurrence.

The technical analysts foresaw the price of Bitcoin surge close to $13500 before stabilizing to the norm. An increase in borrowing would lead to more exposure, which would be more prevalent as this goes further up. But the futures are attaining consistency. This spreads from spot and friction within a small range before getting to the normal size.

The options and futures in the market are neutralizing with time. After about a week, they are now seeming to indicate signs of overheating. Even if Bitcoin boasts only small funding, the alternative cryptocurrencies are showing high levels of funding. Therefore, the entire market needed to have a reset that would calm down the competing cryptocurrencies’ funding. The Bitcoin trends show sheer greed in the market, which needs a healthy pullback to attain a positive direction.

The trading around the weekend as $750M of the market options moves towards expiration is also triggering the volatility. Over the weekends, mostly on Sundays, the Bitcoin and cryptocurrencies are getting highly volatile. Several factors contribute to the volatility in the price to take place. The factors tend to lower the crypto volumes during the weekends with the candle closing anticipation on Sundays. In case Bitcoin will be able to maintain over $12000 a bit longer, it would make a mark of the first weekly candle to go above $12000 since January 2018. With this, Bitcoin continues to experience high volatility with high optimism coming from its market sentiments.

What causes the rise and fall in the crypto prices?

At times, the cryptocurrency investor almost goes bleeding due to a downward trend in the crypto prices. But cryptocurrency is something that everyone wants to invest in and be part of it. But you can imagine the fear that comes with a blackout during downtime. Worry almost tears apart the hearts of the investors. But what brings about these fluctuations?  The media can manipulate the public and the prices as well. Surveys indicate that media reports alter public perception. It could positively or negatively affect prices. The people usually have a wide bearing of what cryptocurrency entails. Besides, noting that some cryptocurrencies are now re-using the Bitcoin codes, given specifications can lead to a rise or fall in the coins’ price. The utility is also an essential factor in determining growth, development, and resources. The cryptocurrency is no different. If not well used, it would lead to fluctuation in prices leading to least if no value. With massive usage of cryptocurrency, the utility also changes. This can lead to instability in prices. Bitcoin has always been volatile. This is reflected in its price drop and recovery after. But this time, it is highly exceptional since the price drop and the recovery happened in just an hour. This event can be very scary for crypto investors and may result in massive liquidation in the crypto market.

It’s here! CRCO available at limited quantities. 🚨 Click here to learn more!
This is default text for notification bar