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Bitcoin tanks more than 9% to below $3700 amid broad cryptocurrency sell-off

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Cryptocurrency Bitcoin fell sharp on Thursday, 10 January, as the 10 largest cryptocurrencies by market cap all declined, according to CoinMarketCap.

Bitcoin traded 10% percent lower near $3,687 as of 4:00 p.m. GMT, according to Tradingview’s Bitcoin price index, which tracks prices from digital currency exchanges Binance, Coinbase, Bitstamp and Bitfinex.

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There was no significant driver behind the widespread drop on Thursday. According to the Cryptolization, total cryptocurrency market cap dropped from $132,210,489,114 to $118,053,039,939 in a matter of a few hours. This might come as a unpleasant suprise to some crypto investors as just a 3 days ago Bitcoin price jumped to $4000 for the first time this year. However, to a seasoned cryptocurrency traders such a high price volatility is nothing new.

Ripple, the second-largest cryptocurrency by market capitalization, traded more than 12% lower, $0.33, TradingView data shows. Ethereum, the third largest crypto, fell more than 15% to $125.

The BTC chart pattern signals that bears have won the fight against bulls. After 3 days above $4000 USD, bulls fail to push BTC up for a breakout $4200/4400 price zone and bears triumphed with a full bearish candle to $3680 USD. Next support zone expected at $3650/3550 USD mark. However, if BTC will fail to rebound from this zone, we could see even a further drop to a new lows at $3300/$2900 price zone. SMA 200 remains the major support for BTC on a weekly frame, thus closing below would have a negative impact on Bitcoin’s price and it would signal further downtrend.

About Mantas Malukas

Mantas is the founder of Dapp Life, crypto investor and an online entrepreneur who has professionally immersed in digital publishing and development for over a decade.

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