Bitcoin Price Drops to $6.5K as Traders Eye CME ‘Gap’ Bounce
Markets defend the critical Bitcoin price level after BTC/USD extends a week of rapid losses, which at one point totaled almost 25%.
Bitcoin (BTC) dropped to within $15 of $6,500 on Nov. 25 after another day of significant losses obliterated previous support levels.
Cryptocurrency market daily overview. Source: Coin360
Bitcoin comes within an inch of $6,500
Data from Coin360 shows BTC/USD bouncing off the significant $6,500 barrier, having fallen 7% in the past 24 hours.
The cryptocurrency’s weekly downturn currently stands at more than 20% versus the same point last week, while monthly, investors have taken a 30% hit on holdings.
Bitcoin seven-day price chart. Source: Coin360
As Cointelegraph reported, current moves are essential in deciding whether bulls have a chance of preserving influence. If not, little remains in the way of Bitcoin dropping as low as $2,500.
Commentators will be keenly eyeing $6,500 in particular, as this figure represents the assumed cut-off point for miner profitability. Previously, analysts had claimed miners would defend that price should Bitcoin fall within its range.
At press time, that theory appeared to hold, with an upwards reversal taking Bitcoin to $6,700.
As an indicator of sentiment among professional traders, regular Cointelegraph contributor Michaël van de Poppe said that longer-term, Bitcoin still remained a firm best choice.
“Whatever movements there are now (whether we go back to $7,800 prior to any further downwards movements), I do believe that the asset $BTC is one of the few bullish assets macro wise for the coming years,” he said in his latest Twitter update late on Sunday.
Van de Poppe added he would remain satisfied if markets bottomed in the low $6,000 range.
Elsewhere, theories explaining Bitcoin’s loss of momentum ranged from the commonplace China exchange crackdown to one involving the United States. As Adamant Capital founder Tuur Demeester noted, U.S. investors could be deliberately forcing the market lower in order to record negative performance for their end-of-year tax obligations.
Short-term performance could also improve thanks to a “gap” in CME Group’s Bitcoin futures. As noted, when futures begin trading at a different price to that at which they closed their previous session, Bitcoin tends to “fill in” the resulting vacuum later. That blank spot currently sits at around $7,300.
Altcoins see red with 10% fall
Altcoin markets predictably suffered as a result of Bitcoin’s weakness. As the week began, most cryptocurrencies in the top twenty by market cap shed almost 10%.
Ether (ETH), the largest altcoin, fell 9.8% to hit $136, its lowest price since Apr. 1 this year.
Ether seven-day price chart. Source: Coin360
Others, such as Litecoin (LTC), managed to stave off the worst of the bearish sentiment to deliver more moderate losses of around 5%.
The overall cryptocurrency market cap also erased a significant chunk of its value, falling to just $183 billion at press time with Bitcoin’s share at 66.2%.