Black Friday Comes Early as Crypto (XRP, BTC and ETH) Sells Off

0

Last Updated on 26 November 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts

Peter Brandt, the legendary trader, claimed a fortnight ago that the difference between the current rise of Bitcoin and the bull run of 2017 was the absence of volatility and reversals during the uptrend. He stated that the reason he was bullish was:

During the 2015-2017 bull market in Bitcoin $BTC, there were 9 significant corrections with the following averages: 37% decline from high to low, 14 weeks from one ATH to the next ATH. Since the early Sep low there have been two 10% corrections

Seems like crypto decided to serve a cold dish of revenge on him as the whole market saw a brutal early Black Friday selloff in the past few hours which took some coins down 20-25% and Bitcoin back to the $17k level. Looks like that $20k record will have to wait a bit.

Update: Bitcoin is now back at the $16k level and some altcoins are over 25% down.

For those of you new to investing in the cryptosphere, welcome to volatility. To those of you who have been with us for a while, looks like the whales decided it was time to take profits and they took their chips off the table.

Advertentie.

30,000 Dow Jones and $19k Bitcoin

Exactly one week ago, on 19 November to be exact, Cryptotips asked whether Bitcoin was booming or bubbling.

As it became clear we were about to reach a possible (temporary) top, we stated:

As the attention span turns from excitement into thrill, at a certain point the euphoria phase is reached where it is what everyone talks about. This is usually the moment before a selloff is due. In stock market terms this has become known as buy the rumor, sell the news, or in other words: when everyone hears about it, that is when it’s too late.

By now, it becomes clear that the worldwide media attention for Bitcoin’s nearing of its ultimate all time high combined with a Dow Jones stock index that passed 30,000 for a first time in history, it is safe to assume that whales (in the cryptosphere) and major investors (in Wall Street) decided it was time to take their chips off the table and buy them back at a lower level.

The numbers are clear for all to see with several altcoins in the CoinMarketCap top 10 down near 22% (like XRP, Chainlink and Cardano).

In essence, we tend to agree with Brian Kelly who stated on CNBCs Fast Money just yesterday:

More than any other asset class in the world, Bitcoin is subject to FOMO. We’re starting to see speculative coins, coins that are under $5 starting to go up 30-40% in a day. Those are types of things to happen at short to medium term tops.

Looks like that $20k will have to wait a bit longer, at least for now. Then again, the New Year is still more than a month off so a new record in 2020 is still possible.