Last night the live Bitcoin price shot below $20,000. This is historic for several reasons. We list the possible consequences and try to estimate where the next BTC support can now be found.
We start of course with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price shoots below $20,000, prices top 25 crypto in the red
At the time of writing, the live Bitcoin price is quoting EUR 18,271.15 ($19,245.17). This is 8.17% lower than during our Bitcoin lunch yesterday.
The prices of the top 25 crypto are also posting red figures. The biggest loss is currently for Lido Staked Ether (STETH), which is losing 10.27%. Apart from the stable coins, Tron (TRX) is performing the best. On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day, including the whole weekend.
Bitcoin price breaks through halving cycles theory
Every 4 years the reward miners receive for validating Bitcoin transactions on the blockchain halves. In these 4 years, a cycle seemed to emerge, with the BTC price first going to a new record price and then making a bear correction. However, the bottom of this correction never came below the top of the previous halving cycle.
With that, one could easily argue that if you bought a Bitcoin and held it for 4 years, you would automatically make a profit. With the BTC trading below the price of the record bull rally of 2017 since this morning, this theory has been broken. In doing so, the end does not seem to be in sight, because if we count backwards, the bottom of the bear correction according to the halving cycle should follow in December of this year.
This makes the current price level historical. Analysts will have to revisit their technical analyses. In addition, the theories about a BTC floor price of $20,000 can be binned.
Here are the first consequences of the BTC crash below $20,000.00
The limit of $20,000.00 is not only important technically, but also psychologically. Therefore, we saw that many investors sold their BTC immediately after this limit was broken. The market capitalization dropped quickly to a total of “only” $ 885 million, where it was still $ 3 trillion in November last year. Incidentally, this does not mean that there are necessarily fewer investors.
Many long positions were also liquidated. In the past 24 hours already for more than $125 million.
Are BTC miners creating more price pressure?
Miners receive BTC as a reward for validating transactions on the Bitcoin blockchain. The historically low prices are making it less and less profitable to mine BTC, after all the reward of 6.25 BTC per block is not changing.
Because of this, on the one hand, there is the need for miners to sell BTC to cover costs. They do this from their inventory that they build up at high BTC prices.
A deeper problem is that more and more miners are being forced to close their mining rigs because it is no longer profitable at all to mine at these prices. The logical consequence is that there will be fewer miners left and thus the Blockchain network of BTC will become less reliable.
Other blockchains that do not use miners, but validate based on Proof of Stake (PoS) do not have this problem and thus they become more attractive to investors.
Where are the next Bitcoin support levels?
The main short-term question now is whether the market will be able to quickly lift the price back above $20,000. In doing so, it is now the weekend and the question is how institutional investors will react on Monday. Will they make support purchases or capitulate?
An initial positive sign is that the Bitcoin price even briefly dipped below $19,000 this morning, but quickly recovered from that and rebounded above it.
Nevertheless, a further decline seems unavoidable. According to initial analyses, the support levels are now around $18,000.00 and then around $15,500.00. The third support level lies at the highest bottom price of technical analyses and lies between $12,383.00 and $11,753.00. In the worst case scenario one expects the bottom at $ 9,467.