Bitcoin, which has soared sharply higher over the last few months, has suddenly turned, losing almost 15% in value over the last 24-hours and sparking fears the latest bubble has burst.
Ethereum, Ripple’s XRP, and litecoin, the three top cryptocurrencies by market capitalization alongside bitcoin, also all turned red, each losing between 5% and 10% in value over the last day according to price data from CoinMarketCap.
The bitcoin price has dived after touching year-to-date highs of $13,880 per bitcoin on the Luxembourg-based Bitstamp exchange late last month to trade at lows of $9,710 earlier this morning.
The sudden bitcoin, ethereum, Ripple XRP, and litecoin price sell-off comes after warnings bitcoin is heading for a “violent breakdown” and technical data that showed a strong sign of buyer exhaustion across bitcoin and cryptocurrency markets.
“We fell off a cliff here, supported by the bottom of this descending triangle,” said crypto analyst and BlockTV reporter Joe Saz. “I believe this descending triangle is going to be a violent breakdown. I don’t typically have a red flag emergency, but it’s looking very bad right now.”
Technical bitcoin price data meanwhile showed a bear cross of short-term moving averages and weakening buy pressure yesterday, interpreted by someas a potential catalyst for a sharp price drop.
The bitcoin price has been pushed higher in recent months, rising over 200% since the beginning of the year, due to a surge of crypto interest from some of the world’s biggest technology companies including iPhone maker Apple and social media giant Facebook.
“The deep pullback last Wednesday night was like a bucket of ice water that was dumped on the anxious crypto market, which was indeed getting a bit too hot,” Mati Greenspan, senior market analyst at brokerage eToro, wrote in a note to clients yesterday.
“The prospect of prices rising too far too fast had some traders feeling fearful, so it’s good to see things relaxing somewhat.”
Bitcoin last year went through a sharp correction after 2017’s epic bull run which saw bitcoin prices go from under $1,000 per bitcoin to almost $20,000 in fewer than 12 months. Last year the bitcoin price fell to lows of around
$3,000 per bitcoin.