The Bitcoin Update: BTC Price Drop, Panic Selling by Bitcoin Miners, Bitcoin Halving

Siamak Masnavi

This article provides: an overview of how Bitcoin (BTC) has been doing over the past 24-hour period; a recap of interesting recent news that might have affected its price (or might do so in the future), and useful observations from Crypto Twitter.

Bitcoin Price Drop

According to data from CryptoCompare, since October 14, the Bitcoin price has been trading in the range $7,900–$8,400, as can be seen in the two-week price chart shown below:

BTC - Two Week Chart - 23 Oct 2019.jpg

Bitcoin started the day (October 23) at $8,035. The price hovered around the $8,000 mark until around 12:20 UTC, when it started to tumble.

BTC - 24 Hour Chart - 23 Oct 2019.png

One thing worth pointing out is that roughly 30 minutes before this fall started, various technical analysts where saying that 60-day volatility "had hit the lowest levels since April 1."

One well-known crypto trader, Josh Rager, predicted yesterday that "not only Bollinger bands but also historical volatility (HV)" were suggesting that "a major move" was coming:

Within one hour, the BTC price dropped from $7,982 to $7,488, i.e. a loss of almost $500 (or 6.18%), going below $7,500 for the first time since May 18:

BTC - Six Month Chart - 23 Oct 2019.jpg

Rager now says that the Bitcoin price could fall further to around $7,200:

According to data from Rek.to, during the past 24-hour period, over $242 million worth of XBTUSD perpetual contracts have been liquidated.

Panic Selling by Large Bitcoin Miners Using Bitmain's Antminer S9?

Around 13:40 UTC, i.e. about one hour and 20 minutes after the BTC dump started, Dovey Wan, a Founding Partner at Primitive Ventures, sent out the following tweet to warn that there were rumors that some large miners who are using Bitmain's very popular Antminer S9 may have already started panic selling:

When asked how she knew that the Antminer S9 was responsible for over 50% of Bitcoin's hashrate, she replied:

Next Year's Bitcoin Halving Event

Regarding next year's Bitcoin halving event, which is estimated to take place around 13 May 2020, around one hour before the BTC dump, Tuur Demeester, a Founding Partner at Adamant Capital, said that he believed that in order for Bitcoin to remain around the $8K level, we would need to have "$100M in net positive demand required per week" until the laving event, and he explained how he came to that conclusion:

 

Featured Image Credit: Photo via Pexels.com