Cryptocurrency Heatmap: A Sea Of Red

Cryptocurrency Heatmap: A Sea Of Red from ZeroHedge

Following the most agressive drop in Bitcoin in almost three years (plunging 37% from its highs in 5 days)… Bitcoin is now down over $7000 from its highs…

Every bounce is sold…

Surveying the damage this morning is nothing short of a bloodbath

Source

If one looks carefully, one can find a few glints of green – Tether, NXT, Komodo, Bitcoin Dark, and SmartCash but they are all microcap.

Futures and spot fell together with various circuit-breakers kicking in…

Some have argued that this was a key technical breakdown of the exponential uptrend…

These kind of drops are not entirely unusual, Bitcoin has crashed by over 30% in every quarter since its inception…

 

In fact, drawdowns are very much business as usual…

As Reuters notes, for the week, it was down around a third – its worst performance since April 2013.

“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London.

“A lot of traders have been waiting for this large correction.”

“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.

Interstingly, Ripple, the third-biggest, has more than quadrupled in price since Monday.

“A lot of the capital is flowing from bitcoin into alternative coins,” said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers in Sydney.

But it’s not just the underlying cryptocurrencies that are bloodbathing. Various companies that have changed their names in recent days/weeks to try and capitalize on crypto’s rise are in trouble this morning…

Riot Blockchain, Long Island Iced Tea (Blockchain), Net Element, and LongFin are all crashing in pre-market…

 

Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said that there have also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.

“Most of it is unsophisticated retail traders getting burned badly,” Innes said on bitcoin’s recent retreat.

 

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