Following a rapid surge in the Bitcoin price from $3,900 to $4,200 within a span of few hours on the Feb 24, today Bitcoin was hammered back below the $3,800 level.
For most of the week, the most valuable digital currency showed strong signals (long-awaited by many traders) of a new bull trend, managing to break resistance on Saturday and reach a critical level above $ 4,200 . Along with Bitcoin, other leading cryptocurrencies also increased in price: Ethereum rose above $160, EOS jumped to $4.44, and Litecoin rose to almost $54.
However, everything changed in the second half of the day, Sunday, February 24, when the markets suddenly collapsed, and all charts returned back in the red. Literally, within a few minutes, Bitcoin fell below $3,800 price mark, returning to the previous level seen beginning of the week. Cumulatively, the cryptocurrency market lost more than $ 11 billion due to this downfall, dropping below $130 billion in market capitalization.
Cryptocurrencies are back in the red : Ethereum (ETH), Ripple (XRP), EOS, Litecoin (LTC), Tron (TRX) are all down by nearly 5%, accroding to CoinmarketCap data.
The total global cryptocurrencies market cap shrunk by $10 billion in the last few hours – from $135.9B to $125.9B. Bitcoin is currently trading at $3,872 on Bitfinex and $3,792 on Bitstamp at press time.
But the sudden dip may not be as unexpected as it may seem at first. Many crypto traders expected a retracement before the next uptrend.