Read Source Article Bitcoin Price Fell 11% in 24 Hours: What Triggered the Drop and What Lies Ahead?
Many analysts and mainstream media outlets including Bloomberg and the Wall Street Journal attributed the recent drop in the Bitcoin price from $7,500 to $6,700 to the hacking attack suffered by Coinrail, a minor cryptocurrency exchange in South Korea.
However, the reasoning behind attributing the latest correction to Coinrail is incorrect, given that Coinrail is a small exchange with a low daily trading volume used by a small portion of investors in South Korea. Bithumb, UPbit, and Korbit remain the three biggest cryptocurrency trading platforms in South Korea, and Coinrail is not considered a major exchange.
Analysts tend to apply any negative event or news to explain declines in the value of Bitcoin and the entire cryptocurrency market because, for general readers and investors, it is difficult to accept the fact that the market moves based on supply and demand, and that the price of Bitcoin has fallen by such a large margin overnight without a solid trigger.
$6,700 Isn’t New
For many weeks, prominent analysts and cryptocurrency researchers including Willy Woo have emphasized that the downward trend of Bitcoin is simply too strong to be influenced by indicators such as the Relative Strength Index (RSI) and moving averages. In
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