The price of Bitcoin (BTC) dropped sharply after approaching $18,500 on Binance and Coinbase. The plunge took place as large sell orders were spotted on both spot and futures exchanges. As Cointelegraph previously reported, traders anticipated a pullback as the price of BTC neared the $18,000 to $19,000 resistance zone. Upon its first retest of the area in nearly three years, the market saw a strong reaction.
Bitcoin confirms $18.5k as a key near-term resistance area. There are two main reasons why Bitcoin saw a swift drop near $18,500, and this caused other cryptocurrencies like Ether (ETH) to correct even harder.
First, the $18,500 level remains the biggest resistance level before a new all-time high above $20,000. Hence, it is a key area of interest for sellers to defend, as breaching $18,500 would raise the chances of a broader rally.
Second, an overwhelming majority of Bitcoin addresses are profitable as BTC tests an important resistance area. According to IntoTheBlock, 99% of BTC addresses are now in a state of profit. This raises the probability of a profit-taking-induced pullback.
There is a high probability that dips would get aggressively bought, based on BTC’s recovery in the past two hours. Following the initial drop to $17,214 on Binance, Bitcoin immediately recovered above $17,600.
The hourly chart of Bitcoin shows that the 20-day moving average (MA) hovers at $17,586. As such, if BTC remains comfortably above that level, the likelihood of a prolonged recovery increases.
Dan Tapiero, the co-founder of 10T Holdings, expressed confidence in Bitcoin’s medium-term outlook. He said that the “big boys” or the smart money would likely buy the dips. Referring to the weekly chart of Bitcoin, he wrote:
“Not often in life do you get to look at a chart like this one. #Bitcoin to slice through highs imminently. 3rd wave up to dwarf the 2017 move and should persist for several years. Real fundamentals driving price unlike ’17 speccy/ico retail flow. Big boys will buy dips now.”
| ICOs | Rating | Days left | |
|---|---|---|---|
| 1 | 2local | 5 | 2 |
| 2 | SerenitySource | 5 | 31 |
| 3 | Geco.one | 5 | 31 |
| 4 | Tycoon | 5 | 32 |
| 5 | DogData | 5 | 32 |
| 6 | Pawtocol | 4.9 | 3 |
| 7 | Curate | 4.9 | 24 |
| 8 | Ledder | 4.9 | 32 |
| 9 | IdeaFex | 4.9 | 565 |
| 10 | BitWings | 4.8 | 31 |
| Сryptocurrency | CVIX | Price | Change, 24h |
|---|---|---|---|
| Bitcoin | 60 | $17 768.92 | 4.57% |
| Ethereum | 56 | $543.44 | 5.67% |
| XRP | 88 | $0.623170 | 13.35% |
| Tether | 1 | $1.00 | -0.05% |
| Chainlink | 55 | $13.14 | 5.54% |
| Bitcoin Cash | 39 | $277.84 | 4.93% |
| Cardano | 79 | $0.163631 | 18.78% |
| Litecoin | 81 | $73.41 | 6.80% |
| Stellar | 87 | $0.199648 | 3.90% |
| Polkadot | 60 | $4.87 | 1.00% |
| Exchange | Volume change, 24h | ||
|---|---|---|---|
| 1 | Binance | 36.37% | |
| 2 | ZG.com | 2.65% | |
| 3 | HBTC | 13.25% | |
| 4 | CITEX | 11.02% | |
| 5 | TAGZ Exchange | 11.50% | |
| 6 | Bidesk | 14.76% | |
| 7 | IDCM | -11.63% | |
| 8 | Bitribe | 17.13% | |
| 9 | Binance.KR | 33.14% | |
| 10 | Chiliz | 16.90% |
