Market visualization. Source: Coin360
Bitcoin pre-halving “shakeout” theory emerges
Data from Coin360 showed BTC/USD suddenly drop from $10,200 late on Tuesday, subsequently putting in a local low of $9,900 before a slight rebound.
At press time on Wednesday, $10,000 was acting as a guide rail, Bitcoin fluctuating immediately above and below the barrier.
Bitcoin seven-day price chart. Source: Coin360
The fresh downside was broadly anticipated by forecasters, who generally agreed that support at higher levels was not strong enough to guarantee bullish short-term behavior.
A consensus had formed around a return to four figures first before any kind of market renaissance got underway.
In line with that theory, regular commentator and CryptoX contributor Crypto Michaël said there was no cause for concern among Bitcoin investors.
“Overall marketcap still looking fresh to me as well,” he commented in a fresh update.
Uploading a chart of BTC/USD’s long-term performance, he added: “Quite boring coming towards the end of the pattern, but all in all fine.”
Fellow contributor Nick Cote suggested selling pressure could last until Bitcoin’s block reward halving in May 2020 — reducing market supply — having likewise advised caution to short-term traders, particularly as the highly-anticipated Bakkt platform launches later this month.
“Unpopular opinion: pre having shakeout before ATH’s,” he wrote on Twitter today.
A possible source of contention in the short-term was cryptocurrency exchange Binance’s blocking of United States users from its service, scheduled for Thursday. In line with regulatory demands, Binance is opening a segregated trading environment for the U.S. market.
Altcoins put in sideways moves
Altcoins meanwhile copied Bitcoin in shedding 1-2% in USD terms over the past 24 hours.
Ether seven-day price chart. Source: Coin360
Alts had previously staged a modest rally in Bitcoin terms, progress which nonetheless faltered as overall sentiment turned to sideways trading.
The overall cryptocurrency market cap stood at $259 billion on Wednesday, with Bitcoin’s share at 69.6%.