The Bitcoin (BTC) price surpassed $ 19,000 on November 24 for the first time in almost three years. This happened immediately after the XRP crash on Coinbase, which shook the cryptocurrency market.
These two events may be coincidental. Although it is assumed that the price of BTC rose almost immediately after the fall of XRP, there may be a connection.
How XRP price increases could lead Bitcoin to new downturns
As Cointelegraph reported on November 24, the XRP price increased almost 80% in 48 hours. As the rally continues, the hype continues to grow.
Interest in cryptocurrency has reached a point where it has obscured Coinbase, the largest cryptocurrency exchange in the United States.
Joe Weisental, co-host of What’d You Miss on Bloomberg TV, confirmed that Coinbase is trending on Twitter. The sudden increase in interest in Coinbase came when the XRP price began to rise. He said:
“Over the last few days, Ripple cryptocurrency has virtually disappeared. Coinbase is trending on Twitter right now, and if you look, everyone is talking about buying it. ”
The problem occurred when the XRP flash dropped after hitting $ 0.90 on Coinbase. This resulted in the market being exposed to extreme volatility in a short time. Bitcoin fell to around $ 18,000 and ETH to $ 585.
Although difficult to prove in the end, market trends show that algorithms have resulted in high volatility. Bitcoin rose rapidly from $ 18,000 to $ 18,500, eventually exceeding $ 19,000.
When the bitcoin price drops to $ 18,000 in just a few minutes, the supply area is likely to be utilized. In other words, it could have entered a very liquid region, which resulted in many purchase orders being executed.
what happened after that?
In the short term, traders and analysts expect Bitcoin to continue its bullish trend as it approaches its peak.
The investor under the pseudonym Blackbeard pointed to the lack of currency flows, despite the fact that the price of BTC reached $ 19,000. This indicates that the selling pressure on the main cryptocurrency is still relatively low. He said:
“Despite the fact that BTC is worth more than $ 19,000, there is no extraordinary influx of cryptocurrency exchanges to detect it. It gives me optimism. ”
Before another trader named Salsa Tequila broke $ 19,000, an increase was expected. He said that when altcoins fall, profits are likely to return to BTC. He said:
“BTC has been put on hold for a few days while money flows in the form of cash. This is not bearish for BTC. We have been working on consolidation for a while below the $ 19K level and I really think it is possible that we will break it. cursed level.When? Maybe when will it calm down? “Alternative currencies and people sell back to bitcoins. ”
It is very likely that the trend of profit by exchanging altcoins for bitcoins will continue in the near future. If this happens, the altcoin market is likely to decline, while BTC is showing strong momentum.