Well, what were you expecting after an over 85% rally in these past two months?
This may have taken us all a bit by surprise despite expecting to see this coming for some time now, but it’s a Thanksgiving sale, and buying the dips is the only option.
Bitcoin started breaking one level after another, from just above $10,000 to a new 2020 high of $19,500 just yesterday. And much like BTC, altcoins have been having a wild time.
Recently, Ether went up to $620, and XRP was reaching for $1; everything was simply exploding higher and higher, approaching their mid-2018 highs.
Add today; the market has turned a deep red just like that.
oh wow, bitcoin selling off during a period of time where us markets will be closed, its almost like its done this 3 times in a row now lol
— loomdart (@loomdart) November 26, 2020
Bitcoin started dropping and didn’t stop until it made its way to nearly $16,300, but the pain isn’t over yet as this 17% crash could further extend into the weekend.
At the time of writing, BTC/USD has been trading around $17,000 with a real trading volume of around $6.68 billion.
Just yesterday, crypto exchange Kraken reported an all-time high volume of $1.4 billion, with $480 million in Bitcoin, $400 million in XRP, and $198 million in ETH. After yesterday, today is going to be another big day for exchanges.
XRP recorded the biggest hit of 25%, falling to just under $0.50 level and Ether to $505.
Today’s biggest losers include Super Bitcoin (-56%), Bankera (-41%), Verge (-37%), ZEN (-32%), KIMCHI (-30%), Zilliqa (-28%), and CRV (-25%).
These deep losses resulted in wiping out $70 billion from the total market cap.
However, still, a few cryptos are recording gains: the notable ones are PumaPay (+56%), Ontology Gas (+53%), and CREAM (22%).
Here’s your Thanksgiving dip.
Hope everyone buying dips not tops.
— Alex (@classicmacro) November 26, 2020
Bears, however, aren’t done with Bitcoin and, by extension, altcoins.
During the last bull run in 2017, the market had an average of 30% retracements nine times; such a pullback will take us to under $14,000 this time.
As Charles Edwards, founder of Capriole Investments, noted yesterday, “19.2K was a technical magnet and biggest near-term test for Bitcoin. That was the time to be super bullish. This is the time to be cautious.”
According to him, the largest cryptocurrency could slide to under $15,000.
“Conditions are very massively overbought and bound for a correction,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. He expects Bitcoin to stabilize and achieve an all-time high, but a large drop would follow even that in the prices for the cryptocurrency.
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