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Bitcoin price sees an unexpected correction, sinks under $7k

By:
on Apr 10, 2020
Updated: May 8, 2020
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  • Bitcoin price once again turned volatile as weekend approaches, sinking below $7k mark.
  • At the time of writing, the price sits at $6,943, threatening to sink lower.
  • Experts believe that a drop to $6,3k could follow, if the support at $6.9k breaks.

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Bitcoin price advanced steadily over the past seven days, even managing to breach a major $7k barrier. After breaching the barrier on Monday, the coin reached its weekly high at $7,391. After this point, it dropped back down a bit, on Tuesday, only to climb up once more on Wednesday.

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Since then, it managed to remain between $7340 and $7,260 for days, until today, April 10th, when it suddenly dropped back down to $6,930.

Bitcoin is sinking: A drop to $6.3k becomes a possibility

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While the current price of $6,943 is still above the price seen last weekend, the coin’s drop came quite unexpectedly. Recent data shows that BTC/USD is sinking below the $400 corridor seen over the past four days. The drop also formed the most volatility in the better part of this week.

BTC price is currently 4.79% lower than 24 hours ago, and it currently continues to drop further down, although slowly.

While traders expected a price rise to commence this weekend, this seems unlikely at this point. However, the bulls still have multiple supports that are still holding for the time being. The biggest support that is currently holding BTC sits at $6,900.

The coin has not broken it as of yet. Although, if it continues to sink, the next level might sit at the lower $6Ks. Michael van de Poppe expects it at around $6.3k.

Late last night, he said that “We might be getting a liquidity tap towards $7,500-7,700 area, after which I’m expecting a sharp decline.

The coin did not reach the predicted levels, but the decline still arrived, as forecasted. He continued by saying that “If we lose $6,900 area though, I’m assuming we’re going straight towards $6,300.

https://twitter.com/CryptoMichNL/status/1248321578837950465?s=20

Crypto market experiencing ‘extreme fear’

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At the same time, the Fear & Greed Index currently shows a reading of 15. This means that the market is currently in extreme fear. As for the traditional stock market, it is seeing a reading of 43, which is still classified as ‘fear.’

Markets are unsure whether to buy or sell the asset.

Alongside Bitcoin, the entire crypto market started seeing drops, as well. In fact, the total market cap for the crypto market once again fell below $200 billion, currently sitting at $197.6 billion. Another big development is that both, Bitcoin Cash and Bitcoin SV recently went through block rewards halving.

BCH saw halving on April 8th, while BSV just completed it 12 hours ago. Two days after its halving, BCH also saw a price drop, while its hash rate dropped by 80%, as miners migrated to the BTC network. The move left BCH open for 51% attacks, although the hash rate has since seen some recovery.

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