Within minutes, the bitcoin price crashed from $10,500 to below $9,900 in an abrupt drop, causing the rest of the crypto market to plunge by large margins.
Battered Bitcoin Price Relinquishes Crucial Psychological Level
As the bitcoin price slipped 4.5 percent on the day, other major crypto assets in the likes of ethereum, bitcoin cash, ripple (XRP), and litecoin dropped by 4 to 10 percent against the U.S. dollar.
Throughout this week, technical analysts and traders have said that while they remain generally optimistic on the short-to-medium-term trend of bitcoin and the rest of the market, bitcoin breaking below a key support level at $11,000 could leave the asset vulnerable to another correction.
Nick Cote, a cryptocurrency trader, said:
“Bearish throwback respected at $11,000 Bullish support respected at $9,700 Bearish bias remains until we re-claim the $11,000 level.”
Even worse, $10,000 represents a crucial psychological – if not technical – support.
Texas West Capital trader Scott Melker similarly stated that the bitcoin price could potentially find an interim bottom at $7,246 if it fails to recover swiftly in the near term.
Trump Admin’s Crypto Bashing Is Short-Term Bearish, Long-Term Bullish
Crypto Twitter: Mnuchin’s BTC Remarks Are ‘Complete & Total Validation’ https://t.co/XTCUqb9795
— CCN Markets (@CCNMarkets) July 15, 2019
Although the criticism of bitcoin and the crypto market by U.S. President Donald Trump and Treasury Secretary Steve Mnuchin were seen as positive factors for the awareness of the market by some industry executives, it is possible that the negative remarks had an overnight impact on the market.