Bitcoin (BTC) Tumbles to $6,600: Six-Month Low

Signs of capitulation are strengthening as the price keeps correcting, abandoning the $7,200 tier after just a few days.

Bitcoin (BTC) turned downward further, erasing hundreds of dollars in an accelerating slide. BTC traded at $6,665.13 as of 6:59 UTC on Monday, on near peak volumes above $44 billion’s equivalent in 24 hours.

The Asian hours trading brought the price down by hundreds of dollars, with strong talk of capitulation on social media. At this point, short-term bearish predictions see BTC return to $5,500, with the most extreme expectations for a slide to $2,500.

The Bitcoin fear and greed index slid to 17 points, still above the extreme sell-off mood in August, where it slid to five points. BTC is now seen as short-term bearish, with a chance of recovery in 2020.

Around 77% of all BTC selling is happening against Tether (USDT), as the stablecoin rose to $1.02 due to overwhelming demand. Almost all other stablecoins are above the dollar peg, as they are seen as a tool to protect funds in a falling market.

The current BTC trading on spot markets is widely distributed, with no one exchange dominating others. But the ascent of derivative markets in essence generates a new price discovery mechanism, as futures outpace spot trading.

https://twitter.com/Fiskantes/status/1198862386255585280

This explains why BTC on-chain activity is relatively low, with multiple inactive “whale” wallets, while at the same time trading sees peak volumes. At this point, BTC sees much more experienced traders, with activity based on stablecoins and derivative markets. This led to comments that BTC is now not controlled by whale “hodlers”.

The futures markets also point to a relief rally, according to trader analysis. The activity of CME futures markets may turn the tides and bring BTC back to a higher price range. https://twitter.com/nivishoes/status/1198834263291879425

The rapid selling in November is starting to change predictions for BTC behavior in 2020, with a revival expected shortly before the halving.