Bitcoin’s Price Swings to Nearly $6,500 in Volatile Trading Hour

Sam Ouimet
Sep 19, 2018 at 21:25 UTC
Updated Sep 20, 2018 at 08:40 UTC
markets

Bitcoin’s volatility was on full display on Wednesday when its price fell from $6,300 to $6,100 before shooting up to $6,500 – all within an hour’s time.

As of press time, the world’s largest cryptocurrency by market capitalization was trading at $6,422, up 5 percent from the day’s low of $6,117. The market did not waste time making its bullish move, scaling over 6 percent in less than 20 minutes to ultimately hit a high of $6,494, according to CoinDesk’s Bitcoin Price Index (BPI).

Coincidentally, the move occurred within just minutes of a CBOE Bitcoin Futures expiration. Bitcoin futures expirations have been documented as having a turbulent effect on the price of the underlying cryptocurrency, so an increase in market volatility perhaps could have been foreseen.

Bitcoin’s move today is more shocking than its usual volatility, as an important technical level of price support of $6,200 was breached, signaling bears were primed to drive prices lower. Evidently, that turned out not to be the case since it is clear demand still exists above the $6,000 mark.

CoinMarketCap data shows that the total market capitalization for the cryptocurrency market rose to roughly $201 billion during the market uptick, up roughly 4 percent and $8 billion from Wednesday’s low.

At the time of writing, the 24-hour growth for other well-known cryptocurrencies is not quite as dramatic, although seven of the ten biggest cryptocurrencies by market capitalization have seen positive price developments. Cardano (ADA) is leading the pack, currently printing a six percent appreciation compared to Tuesday’s figures. 

Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.

Roller coaster image via Shutterstock

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.