Bitcoin Price Drops Below $11,500: Rally Canceled?
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On Tuesday, August 25, as a result of a new escalation in volatility, Bitcoin price drops below $ 11,500.
At the $ 11,400 level, support didn’t strengthen, which led to a more substantial pullback. On some trading platforms, BTC fell to $ 11,250, however, then a rebound followed.
On Wednesday night, the largest digital currency is trading at $ 11,339. Bitcoin capitalization dropped to $ 209.451 billion.
Altcoins and Bitcoin price drops
The cost of all cryptocurrencies on the eve fell by more than $ 8 billion to $ 352.653 billion. The largest altcoin ether (ETH) fell to $ 379, it suffered the largest losses from the top ten cryptocurrencies, having fallen in price over the past 24 hours by more than 6%.
Some traders were expecting more support in the event that Bitcoin dropped to $ 11,400.
However, the decline did not stop at this level, and the risks of more significant losses appeared. True, then there was a rebound, and bitcoin returned to values above $ 11,300. This inspired optimism for those observers who operate on the data on the ongoing accumulation of BTC.
The Glassnode platform recorded another surge in the activity of large investors who own at least a thousand bitcoins. These players are taking advantage of the falling cryptocurrency value to build up their BTC reserves. They are confident that they will win, as, in the long term, the value of bitcoin will add.
#Bitcoin mining difficulty increased by 3.6% and is at an all-time high.
— glassnode (@glassnode) August 24, 2020
The growing hashrate of BTC is another factor reflecting the positive sentiment of market participants. After the May halving (a reduction in the reward for mining a block), miners quickly increased their computing power and brought them to a new maximum.
Mining difficulty increased by 9% after halving, said Rafael Schultze-Kraft, CTO at Glassnode. This suggests that miners are not afraid of periodic Bitcoin rollbacks, and they continue to mine cryptocurrency, as they are confident that the rally will resume soon.
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