Bitcoin Price Suddenly Drops by $500 in Seconds to Fill Futures ‚Gap‘

Bitcoin Price Suddenly Drops by $500 in Seconds to Fill Futures ‚Gap‘

A bounce off $11,500 saves investors from serious pain but $12,000 remains a problematic level to flip to support.

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Bitcoin (BTC) dropped several hundred dollars in seconds on Aug. 10 as $12,000 once more proved too hot to handle. 

Cryptocurrency market daily snapshot Aug. 6

Cryptocurrency market daily snapshot Aug. 6. Source: Coin360

BTC price finds new focus at $11,700

Data from Cointelegraph Markets and Coin360 showed BTC/USD nosedive 4% during Monday trading, bouncing off $11,500 and since returning to $11,700.

In doing so, Bitcoin neatly filled the latest gap in CME Group’s Bitcoin futures markets, which lay just below $11,700. 

BTC/USD 1-day price chart

BTC/USD 1-day price chart. Source: Coin360

A classic move, Cointelegraph predicted on the day that markets would likely attempt to go lower on short timeframes to fill the gap, in line with standard behavior.

The event caused a dramatic spike in liquidations on derivatives giant BitMEX, data from monitoring resource Skew confirms.

BTC/USD liquidations on BitMEX

BTC/USD liquidations on BitMEX. Source: Skew

Analyst: $13,000 will follow a $12,000 breakout

For Cointelegraph Markets analyst Michaël van de Poppe, the sudden dip suggested that Bitcoin was returning to the pattern of behavior seen in recent months. 

“Smaller timeframe chart explaining what just happened. Essentially, we’re back into the ranging gameplan,” he told Twitter followers. 

“Ranging” within a certain price corridor has become a feature of BTC/USD in 2020, with recent gains upending a protracted period, which slowly narrowed to point — a process known as compression.

Going forward, lower levels could see a retest, with significant support just above $10,000 still apt to form the price floor, Van de Poppe thinks.

“Larger timeframe; still expecting such a scenario,” he continued. 

“If we break $12K however, I assume we’ll see $13k.”

Attention will thus now focus on bulls’ ability to cement $12,000 as a support zone, something which has yet to occur on any meaningful level for Bitcoin. 

Nonetheless, the latest weekly close marked the highest since January 2018 and the initial fall from Bitcoin’s all-time highs of $20,000.

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A bounce off $11,500 saves investors from serious pain but $12,000 remains a problematic level to flip to support.

Bitcoin Drops $300 in Seconds Under $10K as ‘Mild Dip’ Fills CME Gap

Bitcoin Drops $300 in Seconds Under $10K as ‘Mild Dip’ Fills CME Gap

Futures gap-filling appeared to dictate another dip for Bitcoin on Monday

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Bitcoin (BTC) fell below $10,000 on Feb. 10 as sudden volatility saw markets abandon five figures just a day after reaching them.

Data from Coin360 and Cointelegraph Markets showed BTC/USD dipping to lows of $9,850 at press time, followed by a bounce-back up to $10,000 and subsequent fluctuation in the upper $9,900 range.

Bitcoin 1-day price chart

Bitcoin 1-day price chart. Source: Coin360

“Mild” dip fills CME futures gap

The move coincided with the start of a fresh week of trading on futures markets, with Bitcoin filling a “gap” left at the end of trading on Friday.

Specifically, CME Group’s futures finished last week at around $9,850 — currently, exactly the level to which BTC/USD fell on Monday.

Rising and falling to hit empty patches in futures is a common feature for Bitcoin, Cointelegraph noting various instances over the past year in particular which have dictated short-term market movements.

CME Group Bitcoin futures 7-day chart

CME Group Bitcoin futures 7-day chart. Source: TradingView

As the price dropped to $9,900, a single buyer on derivatives giant BitMEX purchased over $2 million of BTC in a single transaction, data from monitoring resource WhaleTrades.

Analyzing the situation, Cointelegraph Markets’ filbfilb noted that despite losing $10,000 support, the extent of the latest losses was more notable for its insignificant size.

“This was a fairly mild dip,” he summarized in private comments. “A backtest of the weekend breakout and the CME gap was a high probability.” 

“The question is if we can quickly reclaim 10k or need to test lower,” filbfilb concluded. 

The overall mood nonetheless appeared buoyant in the wake of the gap fill, with CME futures already trading above $10,000 per Bitcoin once again shortly afterward. Overnight on Sunday, futures saw local highs of $10,350 — their best since mid-September 2019.

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Futures gap-filling appeared to dictate another dip for Bitcoin on Monday

Ampleforth Raises $5M in 11 Seconds in Tokinex Exchange Offering

Ampleforth Raises $5M in 11 Seconds in Tokinex Exchange Offering

Token project Ampleforth has raised $5 million in 11 seconds in its initial exchange offering on Tokinex

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Ampleforth has raised $4.9 million in 11 seconds in its AMPL token sale, according to an announcement on June 13.

The initial exchange offering (IEO) was the first to take place on Ethfinex and Hong Kong-based crypto exchange Bitfinex’s Tokinex platform .

An IEO is an alternative to an initial coin offering (ICO) in which a centralized exchange is responsible for vetting the token projects and investors, and then subsequently conducting the initial sale of the token.

This IEO, ran by Tokinex, reportedly sold off 10% of Ampleforth’s total token supply, which will be available to its initial investors some time in the next few days.

Ampleforth purports to be a token that is balanced around an equilibrium price target, but says that it does not qualify as a stablecoin, at least initially.

The cryptocurrency is designed to periodically add or subtract tokens from an investor’s holdings in order to match exchange rate fluctuations, meaning that it has a correspondingly fluctuating market capitalization.

This also means that this token is expected to have a low correlation with bitcoin (BTC) compared with other crypto assets, they say.

The IEO platform Tokinex first launched back in May. Bitfinex and Ethfinex users can participate in IEOs using funds from their own exchange wallets. The platform also uses Know Your Customer (KYC) processes powered by the Blockpass mobile app for sales and IEOs hosted on the platform.


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Token project Ampleforth has raised $5 million in 11 seconds in its initial exchange offering on Tokinex