*This post has been written by Hedgehog, an MCS influencer and one of Korea's famous cryptocurrency key opinion leaders.
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September 4, 2AM UTC CoinMarketCap
Bitcoin's downtrend last night wasn't so bad, it fell to about $9,900 following a failure to support the $10,500 mark. Along with the decline of Bitcoin, the top 10 cryptocurrencies in market capitalization have recorded a terrifying decline.
With the reason for the collapse of the cryptocurrency market last night, the leading cryptocurrency media CoinDesk analyzed three reasons.
1. Bitcoin slid in sync with traditional markets
Last night, despite the favorable US unemployment indicators, the New York Stock Market continued to plunge as negative outlooks spread and key technology stocks such as Apple and Microsoft fell sharply. The Nasdaq index closed at 11,458.10, down about 5%. In response, some experts said, "as the price of Bitcoin has been coupled with the traditional financial market since the coronavirus crash, this bitcoin price also showed a perfect coupling to the fall of the traditional financial market." After that, in order for the Bitcoin price to break through the strong resistance of 12,000 dollars again, the recovery of the traditional financial market is essential.”
2. Bitcoin got pulled down because of DeFi unwinding
Some experts have assessed that the huge downside pressure on the price of bitcoin due to the price decline of Ethereum is the main factor. It is analyzed that a lot of products have appeared in the market due to the full-fledged departure of investors in the early stages of DeFi. There is also an opinion that early DeFi investors, tired of the enormous transaction costs of the Ethereum blockchain, are now leaving the Ethereum chain and moving to the next-generation DeFi blockchain platform. Tron, whose transaction cost is close to ZERO, is evaluated to be superior to Ethereum in the blockchain confirmation speed.
3. Miners sold some of their bitcoin
Some experts claim that the bitcoin crash came due to the bitcoin sell-off by bitcoin miners.
ByteTree First Bitcoin Consumption
The image above shows the first bitcoin consumption. The first bitcoin consumption means that bitcoin mined by bitcoin miners was the first transaction. The first bitcoin consumption, which had been dormant recently, was about $6 million in bitcoin around 12p.m. on September 1, and an additional $5 million in bitcoin was detected around 12p.m. on September 3. It is estimated that some miners have made a profit.
Amid various experts' opinions following the Bitcoin decline, the $10,500 resistance line seems the most important whether this bitcoin decline was the beginning of a downtrend or a temporary correction as the $10,500 section, which was a strong support line, turned into a strong resistance line.
I am a Bitcoin margin trader, Hedgehog. Thank you for reading this post.
*This article has been collected through some news and Twitter posts, and there may be some differences from the facts. I would appreciate it if you read it for reference.
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