Bitcoin Falls From Highs on 'Flippening' Fears

FXOpen

Another volatile week for cryptocurrency traders. Bitcoin briefly broke above the previous all-time high only to sell-off hard on flippening fears. Litecoin followed BTC both up and down but remains tucked in a range.

Bitcoin Falls on Flippening Fears

Bitcoin briefly broke the previous all-time high of $2,848 on FXOpen to hit a new high of $2,889 yesterday. On some other BTC/USD exchanges like Coinbase we touched the $3,000 mark only to sell-off strongly shortly after. The reason behind the heavy selling was flippening fears.

btcusdh4-june13-copy

The ‘Flippening’ refers to BTC losing it’s top position in the crypto world. Yesterday for a brief time bitcoin closest competitor Ether had 82% of bitcoin’s market cap. This caused some panic among speculators and prices fell to a low of $2,450 before recovering somewhat. We are currently trading a bit closer to the highs than the lows at $2,690 dollars per coin. You can follow the flippening here. At the time this article was written it was at 79 percent.

Ether has seen a surge this year driven by speculation and demand for ICOs. The unresolved scaling problems in Bitcoin continue to weigh on prices as both sides of the debate seem no closer to a solution. Bitcoin fees have averaged around $4-5 per transaction for most of the last week. This compares to an average of 25-30 cents for Ether.

Technically BTC/USD in still in the uptrend that began back in April of this year. To end it, the bears will have to break below the $2,400 level. A new BTC downtrend needs a break of the $1,710 swing low. On the longer-term weekly and monthly charts bitcoin looks bullish as well.

Litecoin Still Range-bound

Litecoin followed big brother first up then down but didn’t break any important levels in the process. We remain range-bound in LTC/USD. A new uptrend needs a breakout above $34.50 level. Not far from here we have an important resistance area at the $36.25 all-time high. A breakout above here could lead to extended gains.

ltcusdh4-june13-copy

On the lower end, we need a move below the $15 spike low to signal a new downtrend. Further down we have a support area stretching from the $12.55 swing highs to the $13.33 swing lows. A clearing of this area could extend the move toward the $10 round level. While range-bound on the daily charts, on the weekly and monthlies Litecoin hasn’t broken the uptrend yet.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

ADA Drops to Last Place in the Top 10 Cryptocurrencies BTC/USD Analysis: Bitcoin Price Rises Ahead of Halving BTC/USD Analysis: Bearish Arguments Become More Convincing DOGE Price Increases by 170% in Less Than 2 Months Bitcoin Price Recovered over the Weekend, But Market Anxiety Remains

Latest articles

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL
Financial Market News

Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • UK100 Share Index Rises
Trader’s Tools

What Is a Darvas Box Theory and How Does It Work in Trading?

The Darvas Box Theory, pioneered by Nicolas Darvas in the 1950s, has transcended its stock market origins to become a valuable tool for forex traders. This method leverages specific price movements and patterns, known as the Darvas Box, to track

Shares

NFLX Stock Price Falls Despite Subscriber Growth

Yesterday, after the close of the main trading session on the stock market, Netflix reported to investors for the 1st quarter of 2024.

The report turned out better than expected:
→ earnings per share: actual = USD 5.28, forecast = USD 4.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.