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.