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The price of Bitcoin (BTC) topped $ 19,000 on November 24 for the first time in nearly three years. It followed an XRP flash crash on Coinbase, which rocked the crypto market.
Both incidents could be entirely fortuitous. Although considering that the price of BTC rose almost immediately after the fall of XRP, there could be a correlation.
How XRP’s price rally could have triggered Bitcoin to new highs
As Cointelegraph reported on November 24, the price of XRP climbed almost 80% in 48 hours. As the rally went on, the hype around the cryptocurrency continued to escalate.
Interest in cryptocurrency reached a point where it overwhelmed Coinbase, the largest cryptocurrency exchange in the United States.
Joe Weisenthal, co-host of What did you miss on Bloomberg TV, pointed out that Coinbase is trending on Twitter. The spike in interest around Coinbase happened when the price of XRP started to rise. he said:
“Ripple cryptocurrency has gone absolutely berzerk in recent days. And Coinbase is trending on Twitter right now and if you look, everyone is talking about buying it. “
The problem arose when the XRP flash crashed after hitting $ 0.90 on Coinbase. This caused extreme market volatility within a short period of time. Bitcoin fell to around $ 18,000, while ETH fell to $ 585.
Although it is difficult to prove conclusively, market trends suggest that the flash crash led the algorithms to cause high volatility. The price of Bitcoin quickly rose from $ 18,000 to over $ 18,500, eventually breaking down $ 19,000.
When Bitcoin fell to $ 18,000 in a matter of minutes, a supply area was likely exploited. In other words, it could have fallen in an area with significant liquidity resulting in the execution of many buy orders.
What happens next?
In the near term, traders and analysts expect Bitcoin to continue its uptrend as it nears its all-time high.
A pseudonymous investor known as “Blackbeard” pointed out the lack of foreign exchange entries despite the BTC price hitting $ 19,000. This indicates that the selling pressure on the dominant cryptocurrency is still relatively low. he said:
“Even though the price of BTC is above $ 19K, there is no unusual number of entries to be detected on crypto exchanges. This makes me tbh optimistic. “
Before the breakout above $ 19,000, another pseudonym trader known as “Salsa Tekila” predicted the rally. He said that when altcoins cool down, profits will likely flow back to BTC. he said:
“BTC has been stagnating for the past few days, while money is pouring into the alts. It is not bearish for BTC. We’re consolidating below $ 19K for a while, I realistically think we’re likely to break the damn level. When? Probably when altcoins get colder and people sell back for bitcoin. “
It is quite possible that the trend for altcoin profits to become Bitcoin will continue in the near term. If this happens, the altcoin market would likely stagnate while BTC shows strong momentum.
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