Bitcoin price: drop to $27,700 fills futures gap
Monday’s dramatic drop saw the BTC/USD pair fill a recent CME futures gap. It then rallied.
Bitcoin (BTC) fell below support at US$30,000 on 4 January. There was a rapid drop of thousands of US dollars.
BTC price falls by US$4,000 in 60 minutes
Data from Cointelegraph Markets, Coin360 and TradingView shows that the BTC/USD pair fell by more than 12 percent in just one hour on Monday.
The decline Bitcoin Evolution accelerated after choppy overnight trading on Sunday. In the process, altcoins rose and managed to secure an increasingly large share of the overall market cap.
At press time, the lows were as low as US$27,700. However, the price has risen again to over 30,000 US dollars.
Exchange activity increased, data showed. Inflows rose dramatically throughout the day after traders withdrew money last week.
„I just woke up to the biggest $BTC decline since we cracked the 20,000 mark,“ summarised Venture Coinist podcast host Luke Martin.
„Twenty percent off the top. I’m still getting used to the idea that US$28,000 is the result of a 20 per cent drop.“
CME gap filled despite improbability
Bitcoin thus fulfilled the short-term predictions of Cointelegraph Markets analyst Michaël van de Poppe, who cited this level as a lower boundary for bitcoin in his latest YouTube video.
„Some support zones in bitcoin are primarily the US$29,600 area and then around US$27,600,“ as he said just before the drop.
As Cointelegraph reported, statistician Willy Woo was unimpressed by a sizable drop on Sunday, arguing that only a freak event could take the BTC/USD pair to US$24,000. That’s where one of the „gaps“ in the bitcoin futures markets from December is.
At US$27,700 was also a gap that occurred on the CME’s bitcoin futures markets over the weekend. Bitcoin has not shown this behaviour for a while.