Bitcoin Drops Below $8000 After A 25,000 BTC Transfer To Coinbase
May 2019 will remain as one of the best months for Bitcoin after the 2018 crypto winter and the unstable Q1 of 2019. The sharp value decrease that marked a price fall below $8,000 was, however, speculated to be part of a “price manipulation” schemes.
Bitcoin, the leader in cryptocurrencies, settled at around $8500 after the upward rally in May 2019. Nevertheless, BTC went down to $7951, reaching a support zone. The reason, according to market experts, is the transfer of large amount of BTC in Coinbase’s exchange, coming from an unknown wallet.
The drop managed to erase much of Bitcoin’s headroom, returning the currency to battle the $8000 resistance. Altcoins also suffered from the correction — the total market capitalization of cryptocurrencies shrank by $25 billion.
Despite the drop, altcoins didn’t manage to remain consistent in terms of value. However, Bitcoin’s dominance in the total market capitalization of cryptocurrencies remained unchanged — around 56 percent.
Price manipulations are among the biggest fears of crypto traders and holders. Back in April, Reuters described BTC’s rapid $1000-per-day upwards movement as “an algorithmically-controlled order of little over 20,000 BTCs across three exchanges.”
Bitcoin’s drop may be significant, but it may play a vital role in Bitcoin’s price movements. Financial expert Peter Brandt explained that the decline formed what experts are calling “Doji Top.” During a “Doji Top” bulls are more aggressive at the opening hours of a trading session and bears try to push the price down. However, if bulls manage to get strong support zones, Bitcoin’s price could reach $9000.