The world of cryptocurrencies finally managed to witness the long-anticipated by some experts Bitcoin price correction. The day before the correction, Bitcoin price fluctuated sideways, but at 4 pm on November, 25th Bitcoin’s price went below $19,000, which in turn sparked the correction to a low of $16,623 according to data from Cryptobrowser.io.
Source: CryptoBrowser.io
However, despite the quick bounce after the huge sell-off, the top cryptocurrency to date lost 11% of its value.
Many analysts and crypto experts waved flags of concern over the past week, regarding Bitcoin’s price rally. Experts claimed the gains were due to see a massive downwards price action. Crypto trader Tone Vays and CNBC host Brian Kelly also opted in for a huge correction, forecasting a slump to around $14,000. The opinions by Vays and Kelly were also supported by several key metrics which suggested a downward price movement. One of the key metrics is the Crypto Fear and Greed Index, which remained at record high levels throughout November.
Source: Alternative.Me
One of the primary reasons for the massive price drop may be the fact that large-scale Bitcoin investors decided to transfer their Bitcoin on exchanges, presumably with the idea of making profits from Bitcoin’s push towards $20,000.
“All Exchanges Inflow Mean increased a few hours ago. It indicates that whales, relatively speaking, deposited $BTC to exchanges,” the creator of analytics tool CryptoQuant noted, adding that „long-term on-chain indicators say the buying pressure prevails...... and (Bitcoin) can break 20k in a few days.”
Meanwhile, the altcoin sector continues to flourish despite Bitcoin’s drop. On a weekly basis, most of the top altcoins recorded double-digit price increases, while the market concussion from November 26th didn’t inflict much damage.
Ethereum, for example, is up 11% from last week, despite a daily drop of twelve percent to trade at $524.21. Ripple’s price peak from November 25th now seems to be corrected, but still, the price per XRP token is up by 88.45%. One of the biggest gainers, however, is Stellar (XLM), which managed to double its value in just a week’s span, despite losing almost a quarter of its price on November 26th.
Market-wise, Bitcoin’s dominance has shrunk to 62,5%, while the total market capitalization of the crypto sector plunged by $60 billion to be at $514,112,616,843 as of press time. Trading volumes increased slightly due to the price correction and currently $289,171,419,240 worth of cryptocurrencies were traded over the past 24 hours.