Bitcoin experienced a significant dip earlier today as it it lost almost 15% is a single trading candle before recovering sharply. The cryptocurrency started the day with price index of around $33k but undergoing the correction to $28k and then eventually rising back to around $31k. Altcoins like Ethereum, Litecoin and Bitcoin Cash also experienced significant pullbacks before levelling out again.
Bitcoin’s $5k Dip
Today’s crypto headlines were dominated by the almost $4.5k downwards trading candle of the cryptocurrency. This was attributed to fill the latest CME futures gap and proved to be extremely short-lived overall as the cryptocurrency came back up in no time. The gap was immediately filled and the price drop was soon part of history. This big of a candle is a rare occurrence for the cryptocurrency at any given time and has taken place twice in the space of less than one week, one upwards and then downwards. Both, proved to be short-lived but the downward candle was negated very quickly. This shows that there is a lot of demand for the cryptocurrency and many seasoned traders probably went on a buying spree to fill orders in between.
The net price decrease despite the short selling frenzy on a day to day basis is still less than 2% overall.
Altcoins Recover after Dips
Bigger altcoins like Ethereum, Bitcoin Cash, Litecoin and others also underwent a recent correction as they mirrored Bitcoin’s performance during the dip. Ethereum fell from highs of around $1180 to as low as $918 at one point before recovering back to around the $1000 figure. Similarly Litecoin dropped from highs of around $172 to as low as $143 before recovering back to around $155 at press time. The rest of the altcoin market followed the same pattern. Despite this latest pullback, the altcoins are still in heavy bullish territory and may look to consolidate their gains in the near future. Bitcoin itself is also in deep bullish territory as a downwards move was quickly negated by the buying pressure.
Institutionalized investing is seen as the primary driving force behind recent rise of Bitcoin and altcoins that has shattered record after record. The cryptocurrency is sitting strong at $30k and may look to post sustained growth in the near future again as a move downwards has been negated instantly.
Image source: Marco Verch under CC