Bitcoin (BTC) was priced above $ 19,000 on November 24 for the first time in nearly three years. A sudden drop in XRP on Coinbase followed, rocking the crypto market.
The two incidents could be completely random. While considering that the price of BTC went up almost immediately after the XRP crash, there could be a correlation.
How the XRP price rally could have led Bitcoin to new highs
As Cointelegraph reported on Nov. 24, the price of XRP rose nearly 80% in 48 hours. As the rally progressed, the excitement surrounding the cryptocurrency increased.
Interest in cryptocurrency reached a point where it overwhelmed Coinbase, the largest cryptocurrency exchange in the United States.
Joe Weisenthal, the co-host of What did you miss stressed on Bloomberg TV that Coinbase is trending on Twitter. The surge in interest in Coinbase came when the price of XRP started rising. The said::
“The Ripple cryptocurrency has become absolutely biased in the past few days. And Coinbase is all the rage on Twitter right now and everyone is talking about buying it. “
The problem arose when XRP fell after Coinbase hit $ 0.90. In a short period of time this led to extreme volatility in the market. Bitcoin fell to around $ 18,000 while ETH fell to $ 585.
Although it is difficult to come up with definitive evidence, market trends suggest that the sudden decline caused the algorithms to experience high volatility. The price of Bitcoin quickly rose from $ 18,000 to over $ 18,500, and eventually collapsed at $ 19,000.
If Bitcoin drops to $ 18,000 in just a few minutes, a supply zone will likely be tapped. In other words, it could have fallen into an area of significant liquidity, which resulted in a lot of buy orders being executed.
What happens next
In the short term, traders and analysts expect Bitcoin to continue its upward trend as it approaches its all-time high.
A pseudonymous investor named “Blackbeard” pointed out the lack of inflow to the exchange even though the BTC price hit $ 19,000. This indicates that the selling pressure on the dominant cryptocurrency remains relatively low. The said::
Although the price of BTC exceeds $ 19,000, it does not see an unusual number of entries on cryptocurrency exchanges. That makes me optimistic. “
Before the $ 19,000 breakout, another pseudonym dealer called “Salsa Tekila” predicted the recovery. He said if altcoins settled down, profits would likely go back to BTC. The said::
“BTC has been stagnating for a few days as the money flows in large volumes. This is not bearish for BTC. We’re consolidating under $ 19,000 for a while. Realistically, we’ll likely break out of the damned level. When? Probably when the altcoins calm down and people start selling bitcoins again. “
There is a high probability that the earnings trend with the switch from Altcoins to Bitcoin will continue in the short term. In this case, the altcoin market would likely stagnate while BTC shows strong momentum.