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Bitcoin Fails at $7,650 While Matic Loses 70% in an Hour

December 10, 2019 at 16:15 by Matt Jackson

Bitcoin price rises were halted last night, as the cryptocurrency failed to break resistance at $7,650. Prices bounced off the resistance level, falling as low as $7,273. Although the digital currency stabilized, it has seen more decline in the past hour and is now trading at less than $7,250. However, analysts are still hopeful of a sustained move upwards in the coming days. Bitcoin’s dip has led to a similar fall for most cryptocurrencies, with most coins losing around 2% to 3% on the day. Exceptions include Chainlink, which is up more than 7% on the day, and Matic, which plummeted more than 70% in less than an hour.

BTC prices had been steadily trading between $7,450 and $7,600 over the weekend and into Monday, but the cryptocurrency made a major push at $7,650 late last night. No sooner had it hit this significant level, however, than it rejected this resistance, immediately falling to $7,450 and continuing its downward trajectory. Earlier today, the digital gold reached as low as $7,200, where it did meet some support. Prices recovered a little but there are still some fears from investors and it saw another recent slump, to trade at $7,250. Some traders now expect to retest support just above $7,050 and experts have warned that there needs to be a high volume move above $7,850 to confirm a bullish reversal.

Today’s price decline has, as is typical, dragged the rest of the cryptocurrency market down with Bitcoin. All of the top 20 coins have seen a drop in their dollar value, except Chainlink. It was recently announced that Ampleforth was the latest venture to partner with the increasingly popular network, and news of its successful integration saw Link prices increase by 10% at one point. Link is now trading at $2.18.

While Bitcoin’s slump was notable, it was nothing compared to that of Matic. Matic had experienced significant gains in the past 3 weeks. Having changed hands at $0.014 on November 22nd, the token continued to post daily gains, reaching a high of $0.043 on December 8th, a more than 200% increase in just three weeks.

However, as prices started to fall on Monday, a Tweet from Binance CEO Changpeng Zhao seemingly caused panic and exacerbated the token’s fall. The exchange prevented margin trading for the token and posted that they were investigating the coin.

Although he attempted to allay fears by saying that the data suggested no wrongdoing on the part of the Matic team, the damage had effectively been done. Prices fell by 70% in less than an hour. Some may see this as simple price correction, and prices have steadied at $0.018 but there will be questions raised over whether an exchange should have got so involved in Tweeting its actions.

Bitcoin (BTC) prices are down 3.6% over the past 24 hours, and the cryptocurrency is trading at $7,282.82. Ethereum (ETH) has fallen 2.52% to $145.91 and Ripple (XRP) has seen 2.64% stripped from its prices, now changing hands at $0.22. Bitcoin Cash (BCH) and Litecoin (LTC) have slipped 2.69% and 2.19% and now cost $206.70 and $44.36 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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