Many in the crypto community remained calm and banded together despite the steep drop in the bitcoin price on the heels of an otherwise incredibly bullish month.
Bitcoin’s value was slashed by approximately $21 billion in the last 24 hours, with the BTC price currently holding above the $7,000 threshold. The declines were traced back to a mega sell order on Bitstamp exchange, either creating an opportunity for investors who missed the previous run or providing a warning before the other shoe drops.
Of course, crypto bulls and bears disagree about what comes next.
Crypto trader DonAlt set the tone on Twitter, making it clear the direction in which he believes the bitcoin price is headed: up to $10,000. Blockchain pioneer Vinny Lingham, who only recently conceded that bitcoin had bottomed, seemingly has not wavered from his new bullish take.
I concur 😉 https://t.co/bZckGhfxGX
— Vinny Lingham (@VinnyLingham) May 17, 2019
And while the CNBC trading desk isn’t always where you might turn for crypto trading analysis, cooler heads appear to have prevailed this time around. They provided technical analysis and were encouraged by the “trend line” that’s been in place since the April 4 rally. Tim Seymour stated seemed to suggest that bitcoin was due for a cooling off.
“You actually still are above that trend line, which probably takes you up to around $6,800. You got to a 95 nine-day RSI. Even for bitcoin, that was extreme.”
Another trader on the desk Carter Worth was also impressed with the technical signals, suggesting that the dip in the BTC price is a buying opportunity.
Bitcoin nightmare as a sell-off wiped $21B off its market cap overnight. Here’s what’s behind the crypto crush. pic.twitter.com/w5SX22hhcW
— CNBC’s Fast Money (@CNBCFastMoney) May 17, 2019
TONE VAYS, BITCOIN, AND THE FLASH CRASH
Not everyone is so bullish. Derivatives trader and analyst Tone Vays analyzed what he described as a “monstrosity” in the bitcoin price when it precipitously dropped from $7,800 to $6,180 on Bitstamp. Based on the hourly chart, he said earlier today the stage was set for a “beautiful short trade.” He’s not personally taking the short trade, but said it’s a “tradeable setup.”
Vays warns that “he would not be buying on the way down” and instead “would wait and see when the down ends,” adding:
“I actually think we are going to go down and I think we are going to go sub-$6,000 on this one…I even think we’re going to go below $5,000 as well.”
The uber-bear even wagered during the Consensus conference in New York when the excitement around bitcoin was high that the price would fall below $4,500.
Should the BTC price retreat below $6,900, Vays expect that its drop could be swift to “retest the prior flash crash.”
If bitcoin has proven one thing in 2019, that would be its resilience to pressure.
Bought the BNB dip on the hack. Already paid dividends.
If you bought the BTC dip.
— The Crypto King (@JBTheCryptoKing) May 17, 2019