Bitcoin Price Dips Below $58.8K: Is This the Start of a Bullish Comeback?

Bitcoin Price was trading lower on Thursday, 10 October 2019 falling to $58,867 by the 2 pm Eastern Time. The massive offering came after the traders were dealt a major blow by a heavy sell-off amounting to $191 million in total liquidations. However, cautious buying throughout the day managed to fuel a decent recovery, pushing the price back above $60k by 8:50 p.m.

This market event has prompted concern among the investors: has Bitcoin trend downward and is this a simple blip on the road to oversaturated markets or a sign of things to come?

Large Dumping Pressure Brings Bitcoin Price to $58.8K

Bitcoin Price dropped to one of the largest declines in the last week with Thursday’s sell-off. As reported by a Crypto news source, total liquidations amounted to $191,130,000, and the number of affected traders was over 57,743. Half of the liquidations, or $148.22 million, originated from longs, proving just how much selling power there was.

Among the named unlucky trader was one on Binance who saw his entire trading position which was worth, 10.51 million USD in BTC/USDT wiped out as he become the biggest loser of the day as per given data. This loss was perhaps abrupt due to high levels of trading volume, which occurred prior to the event.

‘Few analysts, including John Smith of CryptoQuant, noted that ‘The sharp increase of selling intensity left many astounded.” ‘Many traders were able to get liquidated in a very short time period, so the game is very volatile and risky if you have to trade in bitcoins.’

However, the community showed some relief as the leading cryptocurrency regained the $60k mark after the huge sell-off. The up movement was gradual, and therefore, when investors who were hoping to see a rebound were looking for a sign, this was perfect for them.

Cautious Buying Fuels Modest Recovery

Despite the strong short-term sell-off, Bitcoin started a slow recover just some hours following the crash of its value. By 8:50 p.m., the digital currency rose again to the $ 60,000, a level that steadied traders and investors. Analysts have pointed that this recovery was attained by the so called ‘closure/cover buying’ where traders restocked at the cheaper prices.

There were no obvious bullish or bearish technical formations for this one-hour chart during this time. The Stochastic values were 57 and Relative Strength Index (RSI) was at 45, crossed half-way. AO was moderately bearish, nevertheless, other indicators pointed to the possible bullish scenario. The MACD at the time of writing this stood at -251 and -318 meaning that it was headed upwards though with some form of caution.

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However, these are the signs that the market is still unstable. A lot of traders are dormant for fear that the price would not be sustainable at its current rate. Nevertheless, there is some buying activity taking place, which suggests that it is done carefully, said Sarah Johnson, a market strategist at Coinbase. ‘Nobody wants to rush in only to be surprised by another sharp dip.

Specifically as of Thursday evening, the market share of Bitcoin occupied 56%, the total market capitalization of which is $1.19 trillion out of $2.11 trillion for cryptocurrency. The rest of the market was more ambiguous; some of the coins were gradually rising after Bitcoin, while others stayed nearly unchanged.

Traders Face $191M in Losses Amid Market Uncertainty

These heavy liquidations have taken traders to the edge as can be seen from the following points. The crypto fear and greed index, an established sentiment barometer, stood at a ‘fear’ level of 37 on Thursday, tissue to market apprehensions over Bitcoin’s future.

However, for South Korea, which slipped into a negative Bitcoin premium only a few days before, the Bitcoin price premium rose to 1.23% by Thursday late evening. At the same time, the Premium Gap for Coinbase was negative at -$46.86, which means that the selling pressure from US traders continues.

Interestingly, the market nervousness is evident from the paralysis exhibited by the investors and the low turnover rate after the selloff. But most of them remain cautious about Machinist trades until more profound signals as Bitcoin price fails to sustain $60K.

However, there is not a complete pessimism among the participants in the market which faces these challenges. There are some individuals who consider that the Bitcoin’s possibility to come back to $60K after such a heavy sell-off is also good for future bouces. But others raise their eyebrows, arguing that the cryptocurrency market is highly unpredictable and very volatile.

Recovery After Loss: A Silver Line Between Aftercare and Liability

The recent Bitcoin large-scale sell out that eradicated about $191 million trader positions is an excellent example of the volatility that is characteristic of the crypto market. Further, cautious buying aimed at lifting the price above $60K, now the outlook must be considered rather vague. Market signs are ambiguous, and sellers are going with their eyes open, unsure whether this revival can continue or a decline is inevitable.

Reflecting this delicate balance between the recovery and the risk, the Bitcoin price needs to be watched closely, as investors should expect further unpredictability in the nearest future. As for whether Bitcoin can continue to grow and sit at prices above $60,000, only time will tell; However, few will forget the events of October 10th. Keep following TheBITJournal and keep am eye on the Bitcoin Price.

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