The “9.4” waterfall reappears. Is it a good opportunity for Bitcoin to fall below $10,000?

After a lapse of 3 years, the cryptocurrency market once again saw a waterfall on September 4, but this time there were no policy factors involved.

According to data from qkl123.com, in less than 24 hours, the price of Bitcoin fell by more than $1,500, falling to a low of $9,960, a three-month low.

Regarding this round of market, Joe DiPasquale, CEO of San Francisco cryptocurrency hedge fund BitBull Capital, said via email:

“In the short term, it is very important to focus on the last line of defense between $10,000 and $10,500. As long as this range holds, Bitcoin is unlikely to enter a long-term bear market period.”

A large amount of Bitcoin was transferred to the exchange the day before the crash

According to Philip Gradwell, chief economist at blockchain analysis company Chainalysis, data from Bitcoin and cryptocurrency exchanges show that there is still selling pressure in the market. He explained:

“Yesterday alone, 92,000 BTC flowed into exchanges, the highest level in 37 days.”

In line with this, analysts at data provider CryptoQuant said bitcoin miners are moving unusually large amounts of bitcoin, perhaps indicating that miners are seeking to cash out their bitcoin rewards.

“Everyone is watching the $10,000 mark,” wrote Mati Greenspan, founder of Quantum Economics, in his popular blog. “The crypto market has broken through some psychological levels, and when we broke through this level in late July, it was because of such strong forces that we never really tested it as support. Well, this may be our chance, and if things get really bad, we may have another chance to buy Bitcoin below $10,000.”

Optimists: $10,000 is the new $1,000

Despite Bitcoin’s recent decline, many within the cryptocurrency community remain optimistic.

“$10,000 is the new $1,000,” Charles Hayter, CEO of Bitcoin and cryptocurrency analysis platform CryptoCompare, said, adding: “As has been the case over the past three years, 2020 has seen a leap forward in terms of infrastructure, regulation, and resilience across the ecosystem.”

Hayter believes that the current Bitcoin market is very similar to the first half of 2017.

Cory Klipsten, CEO of bitcoin purchasing app Swan bitcoin, said via Telegram:

“For much of 2020, Bitcoin’s short-term price action has been highly correlated with the U.S. stock market.”

In addition, he predicts:

“Any drop below $10,000 is a good opportunity to buy greedily.”

In addition, on-chain analyst Willy Woo predicted a week ago that Bitcoin will experience a pullback in the first two weeks of September, but will return to the upward trend afterwards.

Should DeFi take the blame?

In addition to the on-chain data analysis, another speculation about the reason for the decline of Bitcoin is related to the recent boom in DeFi hype.

For example, the most popular sushi mining this week sucks away tens of millions of dollars in funds every day. Therefore, some people believe that the hot defi mining has drained funds from the market, which may be one of the main reasons for this round of decline.

In addition, there are also conspiracy theories that in order to stop the DeFi craze, exchanges choose to concentrate on dumping the market and end this trend in a similar way to 312, but these speculations seem to have no basis at present.

What do you think?