Bitcoin breaks through $9000 resistance level, but rally short-lived
The coin managed to break through the $9,000 mark late on Thursday only for a significant sell-off to follow immediately after.
Bitcoin surged to $9,056 in the late afternoon on Thursday, breaking through the $9,000 resistance level for the first time this year.
However, the rally was short-lived, with Bitcoin almost immediately falling back down to $8,642 levels in a matter of minutes, before hitting an intraday low of $8,070 late on Thursday.
Bitcoin sell-off driven by profit-taking traders
The sell-off that saw Bitcoin fall by $986 over a five-hour period on Thursday was likely driven by profit-taking traders, with the cryptocurrency market lacking any major news that would cause such a significant fall in price.
In the wake of the sell-off, Bitcoin recovered slightly finding support at $8,300 levels and sitting at $8,316 as of 10:40 GMT on Friday.
Bitcoin crash drags down altcoins
Unsurprisingly, the 10% decline in Bitcoin’s price yesterday helped send other cryptocurrencies lower too, with several altcoins including Ethereum, Ripple, EOS, Litecoin and Binance Coin losing between 10% to 8% of their value.
However, it is worth noting that Cosmos was one of the few altcoins to not follow suit, with the cryptocurrency rallying more that 7% over that period.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets