Bad news for Bitcoin and Ethereum today
Today, there is no good news for Bitcoin, Ethereum, or altcoins.
Indeed, a flash-crash is underway affecting the entire crypto market.
The overall situation, however, remains substantially good for now, especially because it had improved significantly in recent days.
Bitcoin News
On Friday, the price of Bitcoin had dropped to $115,000, after being above $117,000, and then until yesterday it had fluctuated around $116,000.
Last night, however, at a certain point a decline was triggered. To be honest, the decline most likely started with the price of some altcoins, and then ended up affecting Bitcoin.
Since many leveraged long positions were open, last night a drop below $114,300 was enough to trigger large forced liquidations of those positions.
As often happens in these cases, the forced liquidations of long positions further drove the price down, triggering a cascade of other position liquidations.
Thus, in just four minutes, the price dropped below $112,000, only to slightly rebound back to around $113,000.
These are absolutely normal dynamics in the crypto markets, which one must get used to.
It is noteworthy, however, that now the price of BTC has returned to the same levels as on September 10, when compared to the Dollar Index, also because starting from last Wednesday the Dollar Index had risen without Bitcoin following it. In other words, it only followed it last night, with more than four days of delay during which the performance of altcoins had slightly inflated the crypto markets.
Ethereum News
During this period, the price of Ethereum does not move on its own, but merely follows the general trend of the crypto markets.
Today, however, something significant is happening, particularly with the price trend of Ethereum in Bitcoin (ETH/BTC).
In fact, until yesterday the price of Ethereum in Bitcoin had remained just below 0.039 BTC, while today it suddenly dropped to 0.037. It is worth noting that this level reached today had not been seen for a month, as it had already risen above 0.038 BTC on August 22.
Today, while the price of Bitcoin in dollars loses about 2.5%, that of Ethereum loses more than 6%, indicating that there had been a slight excess of enthusiasm on ETH in recent weeks.
On the other hand, in the second half of August, Ethereum marked its new all-time high, rising above $4,900 for the first time in its history, so a correction was in the air.
To be honest, a correction from the highs had already occurred, with the drop below $4,300 at the beginning of September, but starting about ten days ago there was a first attempt at a rebound that brought it back above $4,700.
Today, however, it suddenly returned to $4,200, which is still a price 26% higher than at the beginning of the year.
Today’s Issue: Bitcoin, Ethereum, and Altcoins Suffer
In conclusion, it can be stated that today both the price of Bitcoin and that of Ethereum have fallen due to the deflation of a small excess of enthusiasm generated in recent weeks, but they remain largely in the safety zone.
However, this excess of enthusiasm was not particularly evident until yesterday, because it was concentrated on altcoins and not on BTC or ETH.
In fact, the altcoin season index by CMC until yesterday showed that the crypto markets were in an altseason, but in reality, it was not a true altseason.
It was instead just a small fleeting semi-altseason, given that the altcoin season index yesterday still managed to reach nearly 80 points.
The point is that true altseasons are characterized by a common trend of many altcoins whose price performance outperforms that of Bitcoin. Instead, last week only a certain number of altcoins outperformed Bitcoin, clearly indicating that it was not a true altseason.
Today the excess enthusiasm that had inflated around those altcoins has vanished, and this has triggered the decline of the entire crypto market.
Just think about the price of BNB, the true protagonist of this brief semi-altseason, which rose in a few days from just over $900 to almost $1,100, only to suddenly lose 5% today.
Now it will be necessary to wait for the situation to return to normal, even though on Bitcoin and Ethereum it seems to have already done so, but there might be a price to pay on altcoins if the excess enthusiasm of recent days has not yet completely subsided.
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