Bitcoin (BTC) Dips Below $8,000 in Bull and Bear Fight
Futures markets with high reported volumes swayed the price to below $8,000, while spot markets hold on.
Bitcoin (BTC) experiences a trading anomaly, as BitMex and OKEx futures markets push the price below $8,000. Spot markets still trade BTC above $8,100. On Thursday, the price dipped to $7,997, then recovering just above the $8,000 mark.
BTC extends a fight between bulls and bears, as the price was brought down from $8,500 in the past week. The current price action is seen as potentially leading to a deeper slide, instead of a end-of-year rally.
For now, the question is whether BTC may bounce back to $9,000 after weeks of sliding. The coin has proven it can recover $1,000 within hours, if bullish whales appear.
Currently, general enthusiasm for BTC is relatively low, as the hype of 2017 sank even social media activity. Now, the behavior of BTC depends on futures markets, as well as crypto-to-crypto innovative exchanges.
The Bitcoin fear and greed index slid down to 30 points, down from 32 points a day ago, deeper into fear territory. The BTC sell-off lands into Tether (USDT), as more than 82% of all BTC volumes are against the stablecoin. However, USDT is not being sent to the market, but some amount is returned to the treasury.
Currently, USDT is being transferred to the Ethereum network, and some of the coin transfers may facilitate that process.
The failure of BTC to go above $16,000 in a late-October rally turned the tides. Currently, the expectation is that the coin may go through a bearish trend, reawakening before May 15, 2020. However, some believe the halving of the reward may already have led to a rally months ahead of time.
The recent price drop saw BTC dominance fall as low as 65.8%, as some altcoins pulled in more liquidity. BTC has already erased $1,000 since the start of November, and has marked a net loss in the past 30 days of trading, with increased volatility between $7,400 and $10,000.