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- Within the last 24 hours, there was a sudden correction in the crypto market that affected Bitcoin as well as almost all other altcoins.
- The reasons are many and varied and range from the upcoming US presidential election to the still open CME gap at $9,600.
In the last few hours, Bitcoin has plummeted from just under $10,950 to a brief $10,250, marking a correction of more than $700. At the time of writing, the Bitcoin price has stabilized at $10,460, a drop of 3.8% over the last 24 hours. The market capitalization has fallen from $201 billion to $193 billion.
Blockroot’s founder Josh Rager says that the upcoming US elections and the death of the rather conservative judge in the US Supreme Court, Justice Ruth Bader Ginsburg, may have caused unrest among investors. In his opinion, the current development will be short-lived and some more pumps will follow, from which traders can profit in the long run.
Been away from the markets, nice pullback here
But seems like it could be a narrative about the Supreme Court Justice seat and uncertainty
But with Presidential election a month away and the new justice will be a conservative
I see this as short term with more pumps to come
— Josh Rager 📈 (@Josh_Rager) September 21, 2020
Experts continue to agree that Bitcoin remains bullish so far. HornHairs” also describes that traders should not panic. On Twitter he states that BTC is drawing a bullish retest and the bulls will push the price back down to $11,200. The bears on the other hand are pulling the price towards the $$,200 mark. He himself has used the dip to buy more Bitcoin.
$BTC – nothing but a bullish retest for now
Bulls want to reclaim $11.2k
Bears want to see price below $10.2k
Bought dips across the board in anticipation of at least a bounce pic.twitter.com/VbYHYZUPZS
— HornHairs 🌊 (@CryptoHornHairs) September 21, 2020
As Crypto News Flash has already reported, a gap has appeared on the Chicago Mercantile Exchange at the $9,600 mark. This gap is created when there is a large difference between the closing price of the CME on Friday and the opening price on Monday, as the CME is closed over the weekend. This CME gap has been closed many times in the past, but is considered a controversial technical indicator in the community.
Bitcoin Trader “Mac” states that the current development may indicate that Bitcoin will close the CME gap. Should Bitcoin fall below the important $10,200 mark in the next few hours, the probability of this scenario would increase significantly. Even “Ivan on Tech” does not rule out a correction to the $9,600 mark.
Looks ready to finally go fill that CME gap.
Didn’t quite tap the $11,200, 0.65 region I talked about pic.twitter.com/iPpccGGmuz
— Mac ❄️🐺 (@MacnBTC) September 21, 2020
Bitcoin Trader Willy Woo states that the current correction has surprised many investors, as according to the on-chain indicators no such development was to be expected. The sell-off took place exclusively on stock exchanges, without moving large amounts of capital before. In addition, Bitcoin’s correlation with major stock indices, such as the S&P500, has dropped to a new low:
This pullback from what I gather looking on-chain took most spot investors off guard, there wasn’t the usual on-chain activity preceding it. Sell off happened at exchanges only. Stocks correlation pulled BTC down its bullish week of breaking free from Stocks.
Altcoin market follows Bitcoin
The entire Altcoin market around Ethereum, Ripple and Litecoin shows a similar development as Bitcoin. Ethereum fell by 6.87% to $340.90, breaking the important support along the $356 mark downwards. According to Cold Blooded Shiller, the ETH price could even fall further to the $300 level.
Great sell off. Support at $356, break that and I’ll add to the $300 region target.
I’ve been in and out of position on this short 3 times as we interacted with the $383 level, correct everytime, now give me the big one. pic.twitter.com/rIgCKOW5cf
— Cold Blooded Shiller (@ColdBloodShill) September 21, 2020