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Bitcoin Plummets to $6,850, Losing 4% in an Hour

December 16, 2019 at 21:23 by Matt Jackson

Bitcoin prices plummeted around 5% earlier this evening, falling from a price of $7,117 to $6,850 in less than an hour. The drop comes a year after Bitcoin was at $3,100, and many still expect the price to rise, especially as the holiday season approaches. However, there will be some fear that further downward price action could pull Bitcoin down to $6,500 and further, with $5,500 offering some support at lower levels.

It is a year to the day since Bitcoin bottomed out at $3,100. The drop led much of the mass media to predict the end of Bitcoin, with those that were staunchly opposed to the cryptocurrency soundings its death knell. Even following today’s price drop, it has recovered to post more than 100% gains in the year since. However, such is the nature of cryptocurrency volatility, that prices are down more than 3% on the day; still a relatively modest intraday movement.

Bitcoin had tested support at around $7,050 throughout the morning but recovered during the afternoon to reach $7,150. A few hours later, prices plummeted nearly 4% down to $6,850. Some buying action saw a $100 recovery, but the world’s biggest cryptocurrency is now back at $6,870, carrying a possibility of further downside. The next support offered is $6,515 while $6,000 might offer some psychological resistance. If these levels fail, then support will be difficult to come by until the digital currency hits $5,500.

Bitcoin has dragged the majority of other coins and tokens down with it, except for one relatively unheard of coin, MINDOL, which has not only posted 20% gains in the past 24 hours or so but has risen 2,000% in the past two months. The coin is only traded on small exchanges, and the team behind it aims to promote the idea of “cool Japan” to the world. Clearly, its music and anime events, which have been held throughout this year are having a positive effect. The coin is now the 17th largest, by market capitalization, according to CoinMarketCap, and is trading at $4.60.

Bitcoin (BTC) has seen prices drop 3.3% to $6,915.98 while Ethereum (ETH) prices have lost 7.21% and the second-largest cryptocurrency is now trading at $132.97. Ripple (XRP) and Bitcoin Cash (BCH) have fallen 5.6% and 5.34% to $0.207 and $196.45 respectively. Litecoin (LTC) has also lost a significant portion of its price, falling 8.09% to $40.35.

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

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