Bitcoin (BTC) left $ 430 (11 percent) at $ 3,590, placing it well below the critical $ 3,900 level. $ 3,900 was the eye level since that was the price of Bitcoin when the December futures contract expired on CME and is probably the level in which traders of future CME Bitcoins have taken their positions for month.
Bitcoin (BTC) has faced a stiff resistance at the $ 3,900 level several times this month, but managed to overcome the last few days after a brief compression, probably caused by the temporary closure of Bitfinex for server migration. Now, however, Bitcoin (BTC) is back under this key level.
This suggests that futures traders on Bitcoin CMCs have been largely insufficient for January. A past article on Crypto.IQ details on how the maturity dates of CMC Bitcoin futures have a strong connection with Bitcoin pricing behavior.
Image courtesy of Bitcoinwisdom.com. The top is the Bitcoin USD price on Bitstamp, basically the Bitcoin volume. The white line has a level of $ 3,900.
Although this is the biggest collapse in Bitcoin (BTC) prices still in 2019, many other major cryptocurrencies are worsening and are down more than 15% including Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Cardano (ADA), IOTA, EOS and Monero (XMR).
This event interrupts a month-long rally for Ethereum (ETH), Tron (TRX) and Litecoin (LTC), which saw gains of 90%, 165% and 75% respectively before today's price drop. Ethereum (ETH) was mobilizing on speculation concerning the hard fork of Constantinople, arriving less than a week from today, since the fork will reduce the rate of inflation of Ethereum by cutting the block premiums from three ETHs to two ETHs. There will also be several new features implemented as better development tools and lower transaction costs.
The cut of block awards e the decision to implement ProgPoW which makes ASICs much less efficient could cause a battle between the miners and the developers of Ethereum. Crypto.IQ has speculated that the fork Ethereum (ETH) Constantinople could cause similar tensions at the Bitcoin Cash junction (BCH) in November 2018.
If this prediction is accurate, a crash in the price of Ethereum (ETH) may occur. Perhaps the drop in the price of Ethereum (ETH) amplified during the night is due to uncertainty about what will happen when the fork of Constantinople will be launched in less than a week.
In particular, Ripple (XRP) has now taken the number two in CoinMarketCap since Ripple (XRP) is "only" down 10 percent today while Ethereum (ETH) is down 15 percent.
Dogecoin (DOGE) has shown resilience today and is only down seven percent. It has been observed that Dogecoin (DOGE) is less severely affected by large price drops in crypto-space. This is probably due to the fact that Dogecoin (DOGE) has a strong community and at the same time is not a common choice for speculators.
Many other cryptocurrencies than those mentioned in this analysis fell by 10% or more and $ 15.5 billion (11.2%) were cut from the maximum limit of the cryptic market overnight. Currently, the total market capitalization it's $ 123 billion, which is still well above the $ 100 billion bear market minimum we saw in mid-December 2018 when Bitcoin (BTC) hit $ 3,120 on Bitstamp.
It is too early to say that there is a fund for the encrypted market, and if the short sellers on CME are really in control this month, as the data suggest, then it is possible that the Bitcoin (BTC) will decrease further this month . A new bear market minimum test near $ 3,100 is not out of the question.