Market Wrap: Bitcoin Tanks to $10.4K; ETH Market Dominance at 2020 High

Bitcoin continues to slide while ether has a larger share of the crypto market than it has had in years.

  • Bitcoin (BTC) trading around $10,726 as of 20:00 UTC (4 p.m. ET). Slipping 6.1% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $10,468-$11,474
  • BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.

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Bitcoin trading on Coinbase since Sept. 1.
Source: TradingView

Bitcoin continues its downward trend Thursday, with prices descending as low as $10,468 on spot exchanges such as Coinbase. While it has recovered a bit, traders selling for profits has certainly been the theme right now.

Read More: Bitcoin Plunges $403 in 1 Hour to Lowest in a Month

“This is similar to what we’ve seen as bitcoin approached the $10,000 and $11,000 levels, where profit-taking occurred on a few different occasions,” said John Kramer, a trader at crypto over-the-counter firm GSR. “Many investors will see this as an opportunity to buy the dip.”

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Bitcoin trading on Coinbase the past month.
Source: TradingView

Just like Wednesday, leveraged liquidations played a role in exacerbating bitcoin’s price drop. However, Thursday’s wipeout of long traders on derivatives exchange BitMEX was a bit higher, with $10 million in hourly liquidations topping Wednesday’s $9 million hourly spree, the equivalent of a margin call in crypto parlance.

Read More: Bitcoin Risks Deeper Price Pullback as Exchange Inflows Spike

“Some people who were buying in over $11,500 in BTC with leverage suddenly got stopped out when we moved back down towards $11,100,” said Chris Thomas, head of digital assets for Swissquote Bank.

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BitMEX liquidations the past three days.
Source: Skew

Thomas suspects bitcoin’s price will not reach new 2020 highs in the near term, despite testing that level as recently as Tuesday when the price hit $12,085. “I think we trade in the $11,000-$12,000 range for a while,” he said.

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Bitcoin trading on Coinbase the past week.
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