Bitcoin Hits $3,650 During Sell-off, Analyst Sees It As "Normal Crypto Volatility

The price of bitcoin, the flagship cryptocurrency, has been dropping significantly in the last 24-hour period, so much so that it has already lost nearly 10% of its value. The cryptocurrency is currently trading at $3,660 in what an analyst dubbed normal market volatility.

According to CryptoCompare data, BTC is down 9.7% as it went from a $4,040 high to $3,850 in about 30 minutes earlier today, and then plummeted to a daily low of about $3,650. Both sudden sell-offs saw trading volume surge, suggesting a whale has been selling funds.

Bitcoin's price performance in the last 24-hour period

As CryptoGlobe covered a study conducted by Chinas state-run publication National Business Daily (NBD) found that less than 1% of all BTC addresses control nearly 87% of the cryptocurrencys supply. The existence of these whales, the study noted, is worrisome for investors as these large orders can significantly impact the market.

Bitcoins move downward came after Bloomberg revealed the cryptocurrency was on the verge of a big move as the narrowing of the upper and lower bands of the GTI VERA Bands Indicator suggests BTC was about to breakout.

It also comes after Ethereum Classic (ETC), a cryptocurrency created through a hard fork of Ethereum (ETH), suffered a 51% attack that saw a hacker reportedly double spend over 50,000 ETC, at press time worth over $219,000.

Speaking to CryptoGlobe Mati Greenspan, a senior market analyst at eToro, noted that he doesnt believe the markets drop is related to the 51% attack, and noted it seems like normal crypto volatility to me. Via Twitter, he published a chart that seems to show bitcoin has support at around $3,550.

— Mati Greenspan (@MatiGreenspan) January 10, 2019

When asked whether a breakdown below that level would see the cryptocurrency retest the $3,000 mark, he replied it could be, adding that the relevant price levels are pretty clear but past performance is not an indication of future results.

Bitcoin is Outperforming Altcoins

While BTC has lost nearly 10% of its value in the last 24-hour period, things seem to be worst for major altcoins. The MVIS CryptoCompare Digital Assets 100 Index, a market cap-weighted index that tracks the top 100 cryptos, is currently down 11.65% in the same period.

The top 100 cryptoassets' performance in the last 24 hours

Available data shows most top altcoins are down anywhere between 10% and 17% in ...

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Tags: Bitcoin, CryptoCompare, Volatility (finance), Ethereum Classic