Bitcoin quickly climbed to $ 19,000 after falling to $ 18,000. Before that, the XRP on Coinbase rose sharply and collapsed.
Bitcoin Code platform rose to over $ 19,000 on November 24 for the first time in nearly three years. This was followed by an XRP flash crash on Coinbase, which brought the crypto market into turmoil.
It could be a coincidence that these two incidents happened one after the other. Given that BTC price rose almost immediately after the XRP fell, there could be a correlation.
XRP rally could have set new highs for BTC
As Cointelegraph reported on Nov. 24, the XRP rate rose nearly 80 percent in 48 hours . As the rally continued, the hype about the cryptocurrency increased.
Interest in cryptocurrency reached a point where it became too much for Coinbase, the largest cryptocurrency exchange in the United States.
Joe Weisenthal, the co-host of the Bloomberg TV show What’d You Miss , emphasized that Coinbase had started a trend on Twitter. The surge in interest around Coinbase occurred when the XRP price gradually rose. He said :
„The cryptocurrency Ripple has gone completely nuts in the last few days. And Coinbase is trending on Twitter at the moment. Everyone is talking about buying it.“
Issues arose when XRP slumped after hitting $ 0.90 on Coinbase. This has caused extreme volatility in the market within a short period of time. Bitcoin tumbled to around $ 18,000 while ETH fell to $ 585.
While this is difficult to prove, market trends suggest that the flash crash caused high volatility in algorithms. Bitcoin price rose quickly from $ 18,000 to over $ 18,500 and eventually rose to over $ 19,000 .
When Bitcoin fell to $ 18,000 in a matter of minutes, it likely hit a supply zone. In other words, it could have fallen into an area of significant liquidity, which resulted in many buy orders being executed.
In the near future, traders and analysts expect Bitcoin to continue its uptrend as it approaches its all-time high.
The investor named „Blackbeard“ pointed to the lack of stock market inflows even though the BTC price hit $ 19,000. This suggests that the selling pressure on the largest cryptocurrency is still relatively low. He said :
„Even if the BTC price is over 19,000 US dollars, there is no unusual inflow to the crypto exchanges. That makes me honestly optimistic.“
Before the breakout above $ 19,000, another trader named „Salsa Tekila“ predicted the rally. He said that when the altcoins cool down, the profits would likely flow back into BTC. He said :
„BTC has been stalling for a few days while the money is pouring in altcoins. That’s not a bad thing for BTC. We’re consolidating below $ 19,000 for a while. I think you can realistically say we’re probably damn levels When? Probably when the altcoins cool down and people put the money back in Bitcoin. „