Bitcoin Price Abruptly Drops 4%, 12 Hours after Fresh 2019 High at $5,450

[Lmaooo]

Bitcoin Price Abruptly Drops 4%, 12 Hours after Fresh 2019 High at $5,450 – Here’s Why

On April 10, the bitcoin price achieved a new 2019 high at $5,450 in major markets including the U.S., accompanied by an increase in demand for bitcoin from accredited investors.

Consequently, the premium of the Bitcoin Investment Trust (GBTC), a regulated bitcoin investment vehicle overseen by Grayscale, a cryptocurrency investment company with $1.2 billion under management, surged to 10 percent.


The bitcoin price fell by about 4 percent in less than 12 hours (source: coinmarketcap.com)

However, within minutes, the bitcoin price slipped from over $5,400 to $5,200 and in less than 12 hours, the asset fell by nearly 4 percent to $5,170.

Bitcoin Fall Was Mostly Technical

On a daily basis, bitcoin is only down about 1.2 percent and on a weekly basis, the asset is still up 6.8 percent as it added $332 since April 5.

Throughout the past two weeks, ever since bitcoin initiated its initial 20 percent rally from $4,200 to $5,000, it has shown several minor retracements in the 1 to 5 percent range.

On April 4, for instance, after BTC surpassed $5,261, it dropped by more than 7 percent.

The dominant cryptocurrency is likely facing some retracements as it engages in an upside movement because of the presence of resistance levels above the $5,000 region.

When bitcoin first broke out of $4,200 earlier this month, it was considered as a major resistance level and above $4,200, there was less resistance and as such, BTC moved to the $5,000 mark relatively fast.

As said by economist and global markets analyst Alex Krüger, bitcoin faces resistance at $5,300, $5,500, $5,750, and $6,000, all of which need to be tested in a technical sense for the asset to engage in another rally.

CCN | https://www.ccn.com/bitcoin-price-abruptly-dropped-4-fresh-2019-high

[manitou]

Bitcoin doing bitcoin things

[Vishnu.Reang]

Just a few hours ago I had posted that I don't know whether this rally can be sustained or not. The current spike is not accompanied by solid basics. It is solely fueled by rumors. But as of now, it looks like the exchange rates will stabilize at 5K.

[Hannahanto]

Just a few hours ago I had posted that I don't know whether this rally can be sustained or not. The current spike is not accompanied by solid basics. It is solely fueled by rumors. But as of now, it looks like the exchange rates will stabilize at 5K.

Now its being stable around $5k. The drop has really shaken me as i was about to invest believing it will have growth in coming days. Later yes the steady go assured me of investing $500 today into Bitcoin. Will keep it until i see a good hike in price.

[BrewMaster]

*sigh*
4% is the normal fluctuations of the bitcoin market that has been happening for as long as bitcoin existed nearly on a daily basis.
these drops (or rises) are only important if they are much bigger than this (at least 10%) or if they are breaking some sort of line that was important like breaking the support at $5000 or the resistance at $5500

[bttmember]

I think this correction will prove healthy and market will build on it. I am positive that if btc will be able to sustqin the 4800 to 4900 price range then the bullish momentum will continue and soon we will see it crossing 6000 mark.

[bitcoin revo]

Now its being stable around $5k. The drop has really shaken me as i was about to invest believing it will have growth in coming days. Later yes the steady go assured me of investing $500 today into Bitcoin. Will keep it until i see a good hike in price.

This mentality of investing after being reassured by seeing movement on bitcoin's price is limiting you, and if you're not careful, is probably going to lose you hundreds of dollars over your experience with bitcoin. Do you have an entry point where you know you'll buy more coins if bitcoin falls below X, and vice versa with an exit point? Or does your trading depend a little more on emotion (which is nothing bad to admit) and prospect with bitcoin's price rise and anxiety as it falls?

Judging on your spontaneous investment of $500, I'd say you're at risk of significant loss if you don't take a step back and reevaluate your trading habits. Please stay safe out there and stay profitable.

[tomahawk9]

We had a similar drop more than a week ago, when we hit 5.3k but the price went down towards 4900. I think this is a healthy pullback, I'd rather see some consolidation around the low 5k's, build a good floor, before testing 5.4k again. Might be a good time to buy for those looking for short-term profits.

The current spike is not accompanied by solid basics. It is solely fueled by rumors.

What rumours?

[Hamphser]

When we do ever learn? Why still surprised for these drops? If you have been here on this market for some time then these drops wont really be a surprising thing.

It do give out some rally but on exchange it will give out some price correction too afterwards.The only thing that do excites as about is that it didn't able to go below 5k price once again.

[Harlot]

And still a lot of people are still panicking on a price drop like this, its like they aren't really learning at all that is why they cannot even take advantage of every movement they see. They always try to hold and think that the price will continue to go upwards. For the price drop I myself personally sees this as good news which a lot of people will be disagreeing about. A price movement like this is ideal for us hodlers who don't want to see a rush price drop for Bitcoin when a unbelievable pump starts to happen again.

[gabbie2010]

The price had just made a temporary pullback having drop to 4% after the new higher high I don't think there is cause for alarm or panic, bitcoin price movement is not a one way upward but rather there will pullbacks, corrections and ranging thus a good trader knows the right zones to sell and wait for temporary drop or pullbacks to buy again.
The price had dropped to $5K now I strongly believe that the next rally will pump the price to $6K+ having been held at a support at $5K+ and a price rejection is ongoing using a daily timeframe chart as a point of reference.

[Supercrypt]

Just a few hours ago I had posted that I don't know whether this rally can be sustained or not. The current spike is not accompanied by solid basics. It is solely fueled by rumors. But as of now, it looks like the exchange rates will stabilize at 5K.

I missed my chance when the spike occurred, I thought of taken the profit and re investing, but as I did not know what the cause of the spike could be and since we can’t really predict it, I had to leave it believing that whateverpushed the spike in will do it again within the next couple of hours.

But unfortunately, reverse was the case, some smart traders where faster than me and then crashed the price again to what the value was before I experienced the spike, but next time, I will always learnt to put my Technical and fundamental analysis together like you and OP did to arrive at a conclusion, it is not too late though, I am sure another spike will come.

[Adriano2010]

I think this happen because more and more of people start sell when they see the price grow, because maybe some of them buy when price was lower and they want to take profit.

[klaaas]

Compared to last month price this drop wont affect it very much in the gain it got till now. A bit of feeling but a true lost of faith would be much worse. The market players doing there thing.

[BitHodler]

I think this happen because more and more of people start sell when they see the price grow, because maybe some of them buy when price was lower and they want to take profit.

That. It really seems that people have started to get used to going up, and then find it strange that the price corrects in a healthy manner. If you want to see the price pump further, you should hope that people cash out profits.

The more people cash out at this stage, the fewer people with cheap coins there will be left to dump the price at higher levels. It basically means that Bitcoin's base value increases with the price that at the same time increases.

The very fact that OGs have dumped a lot of their coins throughout the last years means that they are bought by people who paid more for these coins, and are less likely to dump at a loss.

Some people wonder who keeps selling at $5000 and $4000 after the $20k peak, but they don't realize that OGs got in well under $100 and don't mind selling at these prices. They are still up a crazy amount.

[arpon11]

*sigh*
4% is the normal fluctuations of the bitcoin market that has been happening for as long as bitcoin existed nearly on a daily basis.
these drops (or rises) are only important if they are much bigger than this (at least 10%) or if they are breaking some sort of line that was important like breaking the support at $5000 or the resistance at $5500

Because of the ways price behave, most times it is very difficult for the market to keep going up and sometimes the support and resistance level limit price within range because there is not enough momentum for the price to break the channels and that is exactly what we see happening now.  It is very important we also understand that $5500 is a strong resistance level and when this trading area is broken then it will be easy for the market to cross $6000.

[Pab]

4.5 % price correct is not much
Bitcoin  defended 4900$ twice
Today trading above 5200$ it looks like trying to build further movement to 6000$
It all looks like accumulation on higher level but i think about 7 k is not so far from now
6k is main key level to break .Big November red candle started from that level

[LeGaulois]

I know think (and admit) Bitcoin moved off the bottom and now we're in an upward trend. What I don't is how high it will go? Whatever it is I'm sure we will see some corrections from time to time this year (Title OP is a good example). I aim to see the $7,000 this in 2019 to stay realist. And I will be fine if this happens (of course I won't complain in case we get a new ATH =))

4.5 % price correct is not much

5% can represent a lot when we're in a sleeping market that crashed by xx% in a year

[Zadicar]

I know think (and admit) Bitcoin moved off the bottom and now we're in an upward trend. What I don't is how high it will go? Whatever it is I'm sure we will see some corrections from time to time this year (Title OP is a good example). I aim to see the $7,000 this in 2019 to stay realist. And I will be fine if this happens (of course I won't complain in case we get a new ATH =))

4.5 % price correct is not much

5% can represent a lot when we're in a sleeping market that crashed by xx% in a year

$7000 is realistic rather than speculating for price to hit up thousands of dollars which are really too exaggerated but well same as you, who dont like to see bitcoins price to soar up?
Ahead price is unknown and these movements are just like on normal days on crypto it can gain some few percent and do lost at the same time.

[adaseb]

I have a hedge trade placed at $5430 and $5495 in case this is the actual yearly top and we head back down from here.

Not worth playing trades at $5500,$5600,$5700,$5800, etc because if we get another BGD move then you will obviously sell way too low. However if we run out of buyers like we did when we topped at $5450 then we might get another nasty drop and $5450 might be a double top move.