[ad_1]
The price of Bitcoin (BTC) topped $ 19,000 on November 24 for the first time in nearly three years. An XRP flash crash on Coinbase followed, which shook the cryptocurrency market.
The two incidents could be completely random. Although considering that the price of BTC rose almost immediately after the XRP drop, there could be a correlation.
How XRP’s price hike could have driven Bitcoin to new highs
As Cointelegraph reported on November 24th, the price of XRP has risen nearly 80% in 48 hours. As the rally progressed, the hype surrounding the cryptocurrency continued to intensify.
Interest in cryptocurrency has reached a point where it has overwhelmed Coinbase, the largest cryptocurrency exchange in the United States.
Joe Weisenthal, the co-host of What did you miss on Bloomberg TV, he pointed out that Coinbase was trending on Twitter. The spike in interest around Coinbase occurred when the price of XRP began to rise. He She said:
“Ripple cryptocurrency has gone completely bad in the past few days. And Coinbase is trending on Twitter right now and if you look it’s all people talking about buying it. “
The problem emerged when XRP crashed after hitting $ 0.90 on Coinbase. It caused the market to undergo extreme volatility in a short amount of time. Bitcoin plunged to around $ 18,000, while ETH fell to $ 585.
While difficult to prove conclusively, market trends suggest that the flash crash led to the algorithms causing high volatility. Bitcoin’s price quickly jumped from $ 18,000 to over $ 18,500, eventually surpassing $ 19,000.
When Bitcoin dropped to $ 18,000 in minutes, a supply zone was likely tapped. In other words, it may have fallen into an area with significant liquidity, causing many buy orders to be executed.
What happens next?
In the short term, traders and analysts expect Bitcoin to continue its uptrend as it approaches its all-time high.
A pseudonymous investor known as “Blackbeard” spotted the lack of foreign exchange inflows despite BTC’s price hitting $ 19,000. This indicates that the selling pressure on the dominant cryptocurrency is still relatively low. He She said:
“Even though the price of BTC is above 19K USD, there is no unusual number of inflows to be detected on crypto exchanges. This makes me tbh bullish.”
Before the $ 19,000 breach, another pseudonymous trader known as “Salsa Tekila” had predicted the rally. He said that when the altcoins cool down, profits will likely return to BTC. He She said:
“BTC has been stalled for a couple of days, as the money is pouring in. It is not bearish for BTC. We’ve been consolidating for a while below $ 19K, realistically I think we’ll probably break that damn level. When? Probably when altcoins cool down and people sell in bitcoin again. “
There is a strong possibility that the trend of profits from altcoins entering Bitcoin will continue in the short term. If that happens, the altcoin market will likely stagnate as BTC shows strong momentum.
[ad_2]Source link
