Now, Bitcoin has reached the end of its bearish triangle pattern and has dropped down to a monthly low of $8,000 after support level of $9,500 was broken. Bitcoin had been trading sideways for the past few weeks and technical analysts were expecting for the largest cryptocurrency to spike towards either direction. Eventually, it dropped below the five-figure mark and has so far, failed to recover.
Although the drop was steep for Bitcoin, it managed to recover back to its support level around $8,300 and it seems to have settled in this area.
Other cryptocurrencies have suffered a similar fate. Ethereum took a dive as low as $155 and is now ranging around $165. After experiencing a 6% increase in 24hrs just a week ago, ETH was hovering at $210. This is the lowest ETH price since May 2019, but looking at it from a wider view, it is down 88% since its all-time high back in January 2018.
The same can be said about digital currency EOS which took a similar plunge to ETH. The price of EOS was at $3.32 and in less than 2hrs, it fell 17% only to settle at $2.73. The blockchain platform that was designed to be more scalable than Bitcoin itself is now down 67% from its highs of $8.38 at the start of 2019.
The reason for the market downfall is unknown but we can only assume that first BTC futures exchange Bakkt’s launch was behind this big sell-off. Another possible scenario is that investors were hoping that Bakkt would deliver real volume in its physically-delivered Bitcoin offerings so many of them were disappointed by its slow start with less than a million dollars registered volume on the first day.
No one knows what will come of this crypto chaos but investors can only hope that they see Bitcoin and Altcoins rally to glorious heights once again.