Cryptocurrency markets are often quite boring over the weekend. In most cases, we see markets trading sideways for two days with no real volume to speak of. This weekend is already shaping up to be quite different, to say the least. Although a major Bitcoin price dip was not necessarily what most people were hoping for, it is what we have been dealt for now. This has affected all of the other major cryptocurrencies, with the exceptions of Litecoin and Ethereum Classic.
Bitcoin Price Goes Deep red as Markets Push Back
It had to be said that the recent Bitcoin price growth would ultimately result in a pushback of sorts. With a gain of around US$500 in about a week, reaching US$5,000 per Bitcoin would have been a very realistic target. Sadly, the markets have decided otherwise and the Bitcoin price is undergoing a very sharp correction right now. With the price having dropped back to around US$4,600 and not stabilizing just yet, it is unclear what the remainder of the weekend will bring.
Unfortunately, the latest Bitcoin price correction was to be expected somewhat. We saw a similar correction around three months ago after a major bull run. History is certainly repeating itself in this regard as we speak. Moreover, one cannot legitimately expect a US$5,000 price point without some people purposefully triggering sell orders. There are also some speculators who opened a short position at this particular price point for obvious reasons.
The trading volume for Bitcoin is not going down, though, which is a positive sign for the time being. With nearly US$3 billion in 24-hour volume, it is evident the Bitcoin price is triggering a frenzy of activity right now. Although the charts indicate most of these trades are sales right now, there will always be people looking to buy the dips. After all, one solid piece of advice in the Bitcoin world is to buy the bleeping dip whenever possible, although one has to keep in mind corrections like these will be part of the process. Looking at the bigger picture, the Bitcoin price is doing just fine, though.
Right now, Bitfinex is leading the charts based on trading volume, followed by Poloniex and GDAX. It also appears Bitfinex has been pushing the price down a bit more compared to other exchanges, as there is a near-US$70 gap between the prices on Bitfinex and GDAX, for example. Now is not the most attractive arbitrage opportunity, though it certainly has a lot of merit. People looking to exploit this gap can gain a lot of money pretty quickly, assuming they can move their bitcoins across fast enough.
What is somewhat surprising is how the Asian exchanges are sliding down the rankings as we speak. In most cases, we would see a Korean, Chinese, or Japanese exchange in the top three in terms of trading volume. That isn’t the case right now, although bitFlyer comes in at number 5. The rest of the Asian exchanges are somewhere between 7th and 11th, which is a bit surprising. Then again, given the weekend trends we often see in the cryptocurrency world, these rankings often look very different compared to weekdays.
It does not appear the Bitcoin price will get a major nudge from the Asian exchanges this weekend. That doesn’t mean the BTC value won’t go up in the coming hours, as there are plenty of other exchanges which can push the price up given enough volume. Where that volume will come from and how much it will affect the Bitcoin price remains to be determined, though. For now, the bearish sentiment across the Bitcoin markets will make it pretty difficult to climb back to US$4,900 anytime soon.
As is to be expected, the Bitcoin price drop is affecting most top alternative cryptocurrencies as well. There are two big exceptions in this regard, as Litecoin has somehow retained most of its value despite this market volatility. Ethereum Classic is also clearly pumping in Asia right now and its value is not dropping by any means. This pump will eventually come to an end sooner or later, though, though the Bitcoin price drop might allow it to go on for a while longer. An interesting weekend lies ahead; that much is evident.
