Market Analysis: Bitcoin (BTC) Rallies to New 2019 High of $13,880 Before Late Afternoon Drop, Other Major Cryptocurrencies Weakening Relative to Bitcoin (BTC)

June 26, 2019 / by Zachary Mashiach

Bitcoin (BTC) reached a new 2019 high of $13,880 around 3 p.m. Eastern time, which was a gain of over 20% in 24 hours and up 342% since the bear market low in December. On the long-term chart, we can see that this current Bitcoin (BTC) rally can only be compared to the rally in late 2017, when Bitcoin (BTC) reached its all-time high near $20,000.

However, at 4:30 p.m. Eastern time, a downmove began, and so far, Bitcoin (BTC) has dropped as low as $11,800. It appears there are no news events associated with this sudden price drop, suggesting that it is likely market manipulation.  The CME Bitcoin Futures Expiration on Friday could possibly be related to this bearish price action. The month started with Bitcoin (BTC) going down, suggesting that CME Bitcoin Futures traders had gone short. However, Bitcoin (BTC) reversed that trend and has been rallying since June 9. Perhaps CME Bitcoin Futures traders who had gone short are trying to manipulate Bitcoin’s (BTC) price downwards before the expiration to try to avoid heavy losses, but this cannot be confirmed. It will be important to watch how the Bitcoin (BTC) market evolves before and after the Friday CME Bitcoin Futures expiration. 

The crash this afternoon reveals Bitcoin (BTC) has critical support near $11,800. It appears Bitcoin (BTC) has resistance levels at $12,800 and $13,900. 

A perfect storm of fundamentals is behind the current Bitcoin (BTC) rally. Capital outflows from China, speculation regarding a possible future stock recession, tensions with Iran that could lead to war, and speculation regarding the block halving in May 2020 are all applying upward pressure to the Bitcoin (BTC) market. These fundamental factors suggest that Bitcoin (BTC) will recover from the crash this afternoon. 

All other major cryptocurrencies are losing relative to Bitcoin (BTC). This is revealed by the Bitcoin (BTC) dominance percentage, which has increased from 60% to 62% in the past 24 hours and was actually as high as 63% before the crash this afternoon. 

Several major cryptocurrencies are technically in the green today, but Bitcoin (BTC) has gained 8% in the past 24 hours, so any cryptocurrencies with gains less than 8% have lost value relative to Bitcoin (BTC). Ethereum (ETH) is up 6%, Cardano (ADA) is up 3.1%, Stellar (XLM) is up 0.6%, LEO is up 1.4%, Zcash (ZEC) is up 3.6%, Tezos (XTZ) is up 1.3%, and Dogecoin (DOGE) is up 2.1%. 

Most major cryptocurrencies are in the red today following this afternoon’s price drop. Ripple (XRP) is down 0.3%, Bitcoin Cash (BCH) is down 0.4%, Litecoin (LTC) is down 2.2%, EOS is down 10%, Binance Coin (BNB) is down 3.8%, Bitcoin SV (BSV) is down 8.6%, Tron (TRX) is down 5.2%, Monero (XMR) is down 7.5%, Dash (DASH) is down 1.5%, NEO is down 5%, IOTA (MIOTA) is down 1.3%, Cosmos (ATOM) is down 3.8%, and Ethereum Classic (ETC) is down 2.5%.

The total crypto market cap hit a new 2019 high of $387 billion today, which is 287% above the bear market low of $100 billion in December. Since then the total crypto market cap has lost $34 billion and is currently near $353 billion.