Cryptocurrency markets are often quite boring over the weekend. In most cases, we will see markets trading sideways for two days with no real volume to speak of. This weekend is already shaping up to be quite different, to say the least. Although a major Bitcoin price dip was not necessarily what most people were hoping for, it is what we have to deal with right now. This also affects all of the other major cryptocurrencies, with the exception of Litecoin and Ethereum Classic.
Bitcoin Price Goes Deep red as Markets Push Back
It has to be said, the recent Bitcoin price growth would effectively result in a push back of some sorts. With a gain of around $500 in about a week, reaching $5,000 per Bitcoin would have been a very realistic target. Sadly, the markets have decided otherwise and the Bitcoin price is going through a very sharp correction right now. With the price dropping back to around $4,600 and not stabilizing just yet, it is unclear what the remainder of the weekend will bring, to say the least.
Unfortunately, this Bitcoin price correction was somewhat to be expected. We have seen a similar correction around two to three months ago after a major bull run. History is certainly repeating itself in this regard as we speak. Moreover, one cannot legitimately expect a $5,000 price point without some people purposefully triggering sell orders. There are also some speculators who opened a short position at this particular price point for obvious reasons.
The trading volume for Bitcoin is not going down, though, which is a positive sign for the time being. With nearly $3bn in 24-hour volume, it is evident the Bitcoin price is triggering a frenzy of activity right now. Although the charts indicate most of these traders are sales right now, there will always be people looking to buy the dips. After all, one solid advice in the Bitcoin world is to buy the bleeping dip whenever possible, although one has to keep in mind corrections like these will be part of the process. Looking at the bigger picture, the Bitcoin price is doing just fine, though.
Right now, Bitfinex is leading the charts based on trading volume, followed by Poloniex and GDAX. It also appears Bitfinex is pushing the price down a bit more compared to other exchanges, as there is a near $70 gap between Bitfinex and GDAX, for example. It is not the most attractive arbitrage opportunity right now, though, but it certainly has a lot of merit. People looking to explore this gap can gain a lot of money pretty quickly, assuming they can move their bitcoins across fast enough.
What is somewhat surprising is how the Asian exchanges are sliding down the rankings as we speak. In most cases, we would see a Korean, Chinese, or Japanese exchange in the top three by trading volume. That isn’t the case right now, although bitFlyer comes in at number 5. The rest of the Asian exchanges are somewhere between 7th and 11th, which is a bit surprising. Then again, given the weekend trends we often see in the cryptocurrency world, these rankings often look very different compared to during the weekdays.
It does not appear the Bitcoin price will get a major nudge from the Asian exchanges this weekend. That doesn’t mean the BTC value won’t go up in the coming hours, as there are plenty of other exchanges which can push the price up if there is enough volume. Where that volume will come from and how much it can affect the Bitcoin price, remains to be determined, though. For now, the bearish sentiment across the Bitcoin market will make it pretty difficult to climb back toward $4,900 anytime soon.
As is to be expected, the Bitcoin price drop is affecting most other top alternative cryptocurrencies as well. There are two big exceptions in this regard, as Litecoin has somehow successfully most of its value despite this market volatility. Ethereum Classic is also clearly pumping in Asia right now and its value is not dropping by any means. This pump will effectively come to an end sooner or later, though, albeit this Bitcoin price drop may allow it to go on for a while longer. An interesting weekend leis ahead, that much is evident.