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 | 25 |
| 2 | PointPay | 5 | 137 |
| 3 | Mindsync | 4.98 | 116 |
| 4 | Pawtocol | 4.9 | 21 |
| 5 | Ledder | 4.9 | 24 |
| 6 | DogData | 4.9 | 25 |
| 7 | Tycoon | 4.9 | 55 |
| 8 | SerenitySource | 4.9 | 55 |
| 9 | Curate | 4.9 | 85 |
| 10 | IdeaFex | 4.9 | 468 |
| Š”ryptocurrency | CVIX | Price | Change, 24h |
|---|---|---|---|
| Bitcoin | 48 | $48 283.83 | 2.31% |
| Ethereum | 66 | $1 565.08 | 6.27% |
| Tether | 1 | $0.999600 | -0.08% |
| Cardano | 74 | $1.12 | -0.57% |
| Binance Coin | 88 | $225.60 | 1.83% |
| Polkadot | 75 | $33.32 | 1.43% |
| XRP | 74 | $0.464000 | 1.42% |
| UniSwap | 73 | $28.16 | 3.39% |
| Litecoin | 65 | $182.05 | 5.16% |
| Chainlink | 64 | $27.24 | 2.88% |
| Exchange | Volume change, 24h | ||
|---|---|---|---|
| 1 | Binance | 22.88% | |
| 2 | Coinbase Pro | 24.64% | |
| 3 | Kraken | 30.06% | |
| 4 | Bitfinex | 24.82% | |
| 5 | KuCoin | 17.68% | |
| 6 | Venus | 26.41% | |
| 7 | Binance.KR | 17.13% | |
| 8 | EtherFlyer | 41.08% | |
| 9 | HBTC | 23.84% | |
| 10 | ZG.com | 11.43% |
