No one knows for certain Bitcoin dropped. It’s probably technical, however I guess part of this solution is associated with this existing Bitcoin Cash “hash and cash” wars.
Let’s put it this way, here are some motives “why” we might have fallen:
- Purely technical. Low-volume evaluation at the base of the modern selection, shorts were at a current low, underside was analyzed one a lot of times, and also the end result waswe broke through the base of the overarching 2018 triangle.
- The wonderful alt runs recently have only caused a normal correction, however for coins such as BTC, ETH, LTC, along with ETC which didn’t have nice runs, the correction period is a little brutal.
- The Bitcoin Cash Dramaresulting from the upcoming fork (that I am dubbing “that the Hash and Cash Wars”) is having a bigger ripple effect than crypto traders are giving it credit for. This is either an excuse or a valid argumentation.
- Weakness in the share marketplace, especially in tech is leading to speculators liquidating crypto. Also, hedge funds who had crypto holdings selling toward the end of the year.
- Something else I’m not thinking of (maybe there is some ETF or Bakkt thing only small groups know about).
All those could be reasons, and generally I tend to favor the “only technical” explanations, especially when the charts indicate that this could be the case. But, it is partially worth thinking about the Bitcoin Cash war.
Here are some points on that:
- Ver’s ABC and Craig Wright‘s SV are in potential battle to the death, and each camp has a good bit of money (“cash”) and miners (“hash” power) behind them. They are fighting over block size. Without going into details, SV looks like it might be able to break ABC due to having more mining power. In the worst case, this has the potential to cause chaos in the mining community and development community, and it could affect BCH holders and impact BCH adoption. Consider, everyone who has been holding BTC long also ended up with BCH and now will be in for this fork. So big players generally have exposure to BCH via holding, mining, running a business, etc.
- Exchanges like Coinbase and Kraken seem to be favoring ABC and calling it BCH. Problem is, in this fork it is super unclear which chain will win or if both will win. I’m not saying exchanges are doing defame, but at the end of the day anyone holding or trading BCH on an exchange that won’t charge both forks without a doubt is putting their own funds in danger.
… too enjoy, consider this Tweet out of Craig Wright:
To most BTC miners…
If you turn to mine BCHwe could want to invest in this together with BTC, when we perform, we all sell for USD and… we presume BTC marketplace doesn’t have any room… it unmanned.
Think about this. We’ll sell A Lot!
Andhave a Wonderful afternoon
(BTC into 1, 000 doesn’t phase me) pic.twitter.com/oUScEahtWc
— Dr Craig S Wright (@ProfFaustus) November 14, 2018
In short, you will find a few solid BCH related grounds to goto dread and cash somewhat, as well as of those coins that are bigger that this really could possibly be using a massive effect. Put that with all the technicals and sellers at the share marketplace and the correction / collision increases up.
In sum, I often prefer the technical justification, however, the BCH item is… anything.
That said, it isn’t all bad news. There is still a chance of a reversal for one, and for two, whatever support crypto finds might prove to produce more volume and could potentially become the bottom of the 2018 bear.
Also, after all the “argumentation ” for the drop was BCH drama, if the fork goes off without a hitch tomorrow and we all end up with 2 viable BCH tokens, it could actually work as a sense for the marketplace to rally (not to mention if tech shares can pick themselves up a little).
In short, the point at which there is no hope is far down from where we currently sit. Today didn’t move nicely, but There’s a great deal which will go directly with crypto from the forthcoming weeks, months, etc..
“Bitcoin Hits 2018 Lows, Why Did it Drop? ” comprises advice concerning the next Cryptocurrencies:
Bitcoin (BTC), Bitcoin Cash (BCH) Bitcoin SV (BSV)