What's Bitcoin Triggered Sharp Price Plunge?

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Bitcoin prices dropped significantly today, falling below $ 5,400 and reaching their lowest prices since late last year.

The digital currency declined to as little as $ 5,390.12, losing more than 10% in the space of 24 hours and hitting a fresh 2018 low, CoinDesk price data reveals.

This decline has had a significant impact on total losses, declining from $ 210 billion in total value to $ 180 billion by roughly 15:30 UTC (approximately 10:30 am ET), according to CoinMarketCap.

When analyzing the facts, the analysts generally point out that they are analysts generally pointed to the technical analysis or the uncertainty surrounding the future hard fork in bitcoin cash.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin Cash Hard Fork FUD

Several analysts focused on the situation in the world of cash, currently the fourth-largest digital currency by market capitalization on CoinMarketCap.

Craig Wright and Roger Ver, both major proponents of bitcoin cash, have had different advocates for two different versions of the digital currency.

"The result is likely to be a bit different in the network from other Bitcoin Cash versions," said Mati Greenspan, senior market analyst at the eToro Social Trading Platform, told Business Insider.

"There is a tremendous amount of FUD surrounding the Bitcoin Cash hard fork," said Joshua Frank, co-founder of cryptocurrency analytics platform TheTIE.io.

"It seems like there is a lot of confusion in the marketplace that will win over the winner in the BCHABC vs. BCHSV fight," he added. Frank stated:

We have seen this FUD and confusion in Twitter conversations. This article is translated by the fact that Bitcoin Cash has had 24 hours ago and BCH's tweet volume is 217% higher than its average trading time.

With the sentiment expressed by crypto traders on Twitter, both the short and long-term sentiment of Bitcoin Cash remain negative. It will be interesting to see the feeling of BCHABC. BCHSV as well as Mining Adoption play out over the next 48 hours. We anticipate this having a strong impact on future price movement.

Technical Developments

While Frank emphasized feeling, other analysts pointed to sharpeners when explaining bitcoin's recent sharp drop.

"As far as I can tell this move is more technical in nature," said Greenspan.

Eric Ervin, CEO of Blockforce Capital, offered a similar perspective, stating that "the recent price plunge is a cause of purely technical moves."

"The significance of the $ 6,000 level of support," he said.

As a result, "many investors have come to see it as a stop-loss measure." This would explain the large amount of liquidations that have occurred.

"Looking forward, today's price drop can be hurt, as well as it can bounce back," added Ervin.

Dual Headwinds

While some analysts are trying to get a better understanding of the market, they are not enough of the market.

Tim Enneking, managing director of Digital Capital Management, was in this camp.

"The markets have been incredibly soft and the BCH fork simply provided the catalyst for a drop that has been waiting for a while," he said.

Joe DiPasquale, CEO of Cryptocurrency Fund of Hedge Funds BitBull Capital, provided a similar point of view.

"Today's sharp drop in Bitcoin is a result of both the Bitcoin Cash Dispute (the upcoming fork) and the increasing pressure on the $ 6K price point."

He noted that "Over the last few months, that has been repeatedly tested, and is bouncing back to lower and lower highs."

"While we were seeing the rebuffing of the $ 6K price point, we found that it was more likely that the price was better."

DiPasquale emphasized that as market participants liked to spread FUD, it provides a catalyst for sell-offs.

As a result, many traders may simply "adopt a wait and see" approach until things calm down, he concluded.

Disclosure: I own some bitcoin, bitcoin cash and ether.

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Bitcoin prices dropped significantly today, falling below $ 5,400 and reaching their lowest prices since late last year.

The digital currency declined to as little as $ 5,390.12, losing more than 10% in the space of 24 hours and hitting a fresh 2018 low, CoinDesk price data reveals.

This decline has had a significant impact on total losses, declining from $ 210 billion in total value to $ 180 billion by roughly 15:30 UTC (approximately 10:30 am ET), according to CoinMarketCap.

When analyzing the facts, the analysts generally point out that they are analysts generally pointed to the technical analysis or the uncertainty surrounding the future hard fork in bitcoin cash.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin Cash Hard Fork FUD

Several analysts focused on the situation in the world of cash, currently the fourth-largest digital currency by market capitalization on CoinMarketCap.

Craig Wright and Roger Ver, both major proponents of bitcoin cash, have had different advocates for two different versions of the digital currency.

"The result is likely to be a bit different in the network from other Bitcoin Cash versions," said Mati Greenspan, senior market analyst at the eToro Social Trading Platform, told Business Insider.

"There is a tremendous amount of FUD surrounding the Bitcoin Cash hard fork," said Joshua Frank, co-founder of cryptocurrency analytics platform TheTIE.io.

"It seems like there is a lot of confusion in the marketplace that will win over the winner in the BCHABC vs. BCHSV fight," he added. Frank stated:

We have seen this FUD and confusion in Twitter conversations. This article is translated by the fact that Bitcoin Cash has had 24 hours ago and BCH's tweet volume is 217% higher than its average trading time.

With the sentiment expressed by crypto traders on Twitter, both the short and long-term sentiment of Bitcoin Cash remain negative. It will be interesting to see the feeling of BCHABC. BCHSV as well as Mining Adoption play out over the next 48 hours. We anticipate this having a strong impact on future price movement.

Technical Developments

While Frank emphasized feeling, other analysts pointed to sharpeners when explaining bitcoin's recent sharp drop.

"As far as I can tell this move is more technical in nature," said Greenspan.

Eric Ervin, CEO of Blockforce Capital, offered a similar perspective, stating that "the recent price plunge is a cause of purely technical moves."

"The significance of the $ 6,000 level of support," he said.

As a result, "many investors have come to see it as a stop-loss measure." This would explain the large amount of liquidations that have occurred.

"Looking forward, today's price drop can be hurt, as well as it can bounce back," added Ervin.

Dual Headwinds

While some analysts are trying to get a better understanding of the market, they are not enough of the market.

Tim Enneking, managing director of Digital Capital Management, was in this camp.

"The markets have been incredibly soft and the BCH fork simply provided the catalyst for a drop that has been waiting for a while," he said.

Joe DiPasquale, CEO of Cryptocurrency Fund of Hedge Funds BitBull Capital, provided a similar point of view.

"Today's sharp drop in Bitcoin is a result of both the Bitcoin Cash Dispute (the upcoming fork) and the increasing pressure on the $ 6K price point."

He noted that "Over the last few months, that has been repeatedly tested, and is bouncing back to lower and lower highs."

"While we were seeing the rebuffing of the $ 6K price point, we found that it was more likely that the price was better."

DiPasquale emphasized that as market participants liked to spread FUD, it provides a catalyst for sell-offs.

As a result, many traders may simply "adopt a wait and see" approach until things calm down, he concluded.

Disclosure: I own some bitcoin, bitcoin cash and ether.