One year ago yesterday (November 14th, 2018), the price of Bitcoin (BTC) began to tank. During that day, the cryptocurrency fell from $6,200 \u2014 where it had held for a majority of the summer months \u2014 to $5,500, a 12% drop that was the worst daily performance for the asset in over two months.<\/p>\n
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It is now November 15th, 2019. What happened during that fateful day, and what has changed in the crypto industry since then?<\/p>\n
September to November of 2018 was a weird time for the cryptocurrency markets; then, a majority of analysts were leaning long, as Bitcoin had managed to hold $6,000 for months on end, leaving many to suggest that this level was a long-term bottom.<\/p>\n
Though, on the morning of November 14th, this was proven not to be the case. As aforementioned, BTC collapsed by 12% out of nowhere<\/a>, falling after months of consolidation in a seeming bottoming pattern.<\/p>\n The exact cause of the plunge was never pinpointed, though it coincided with the start of a hash rate war between Craig Wright’s and Jihan Wu’s camps in the Bitcoin Cash ecosystem, and capitulation of BTC miners and other industry members.<\/p>\n Bitcoin’s -12% performance on that one fateful day triggered a four-week move that eventually brought the cryptocurrency as low as $3,100 \u2014 depending on what exchange you check \u2014\u00a0 by the middle of December.<\/p>\n The eight-week period between the middle of November and the start of January was arguably the most apathetic the cryptocurrency market had been in years, with cryptocurrency firms dumping their staff<\/a> as capital runways became short, analysts calling for sub-$2,000 Bitcoin prices<\/a>, and mainstream media opining that the blockchain gravy train had crashed entirely.<\/p>\n Happy anniversary to that… I guess.<\/p>\n While this is likely just a coincidence, an extremely important signal flashed bearish during this year’s “anniversary” of the start of the infamous 2018 capitulation. Per previous reports from NewsBTC<\/a>, the Hash Ribbons \u2014 an indicator tracking the health of Bitcoin\u2019s hash rate \u2014 has just seen a bearish crossover. While this may not mean much in and of itself, the bearish crossover of the Ribbons was last seen \u201cjust before Bitcoin broke down from $6,000\u2026 TL;DR this is a bearish signal.\u201d<\/p>\n Potential miner capitulation at a hash rate cross. — Preston Pysh (@PrestonPysh) November 14, 2019<\/a><\/p><\/blockquote>\nHow’s Bitcoin Celebrating the Anniversary?<\/strong><\/h2>\n
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Great chart by @caprioleio<\/a>. #Bitcoin<\/a> pic.twitter.com\/fBMwrrzHxf<\/a><\/p>\n