On one of the most turbulent days in Bitcoin since the China miner meltdown, a $9,000 daily loss has the market scratching its head.
Bitcoin dropped significantly as trading resumed on Sept. 7, as a tumultuous day sent BTC price movement below $44,000 in one of the year’s most volatile days.
The rise happened only hours after analysts agreed that BTC/USD needed to remain over $50,000 to maintain positive momentum.
Cointelegraph’s Michal van de Poppe identified $49,500 as the point of no return if it fails to hold as support. Following that, he stated that $44,000 might come next.
He later remarked that Bitcoin had narrowed the CME futures gap that had opened over the weekend.
At the time of writing, Bitcoin was trading at about $46,700, considerably below the required minimum, having reached a floor of $47,200.
Scott Melker, a trader and analyst, criticized high-volume traders. “Leave it to the whales to dump Bitcoin on the day El Salvador legalizes it,” he added.
The selloff on Tuesday is the most dramatic reversal in a rally that has raised Bitcoin over 75 percent since late July. According to CoinMarketCap, the overall cryptocurrency market value has dropped by roughly $300 billion in the last 24 hours.
While the El Salvador rollout may have been a direct cause of the Bitcoin fluctuations, other factors in the notoriously volatile cryptocurrency industry might possibly be at work.