markets report bitcoin price
Bitcoin,  Markets Report

Markets Report: Bitcoin dives to $18,100 as $20,000 sparks huge volatility

Unpredictable trading conditions ensue thanks to selling pressure near $20,000, but futures come with $400 of all-time highs

Bitcoin saw a unique day on December 1 as volatility took the market up and down by $1,000 or more.

Data from price trackers including CoinMarketCap and TradingView showed BTC/USD fluctuating wildly as it approached the historic $20,000.

Even before Wall St. opened on Tuesday, Bitcoin was gearing up to produce some highly unusual activity. After coming within $100 of $20,000 and beating its all-time highs, the largest cryptocurrency shed $1,000 in under ten minutes.

$20,000 proves to be Bitcoin’s Everest

Such a move is almost unheard of, even in the unpredictable world of Bitcoin price action, and its appearance underscored the significance of $20,000 as a price level.

As Modern Consensus reported, a similar event occurred when Bitcoin attempted to retake $19,500 last week. Since then, market strength has returned, but the ability to beat selling pressure at $20,000 remains elusive.

markets report bitcoin price
Bitcoin saw a wild few hours’ trading on Tuesday. (Photo: TradingView)

“Today is a day to remember for Bitcoin,” popular Twitter commentator MMCrypto declared as the volatility hit.

Overall bullishness continued to characterize sentiment on Tuesday, despite the rejection and a number of factors pointing to a fresh potential price drop. 

Among these is the giant $1,300 futures gap at $16,900, with futures markets still to react to what is traditionally a short-term price influence. On Tuesday, the market conversely continued rising, hitting $20,300 prior to the sudden reversal.

The local high does not represent a record for CME Group’s Bitcoin futures, the benchmark for the industry, as these first traded at $20,700 in December 2017.

Rejection doesn’t bother the bulls

Amid the excitement, another metric flashed a bigger warning than ever about the prospect of a market correction. 

The Crypto Fear & Greed Index, previous dipping from near record highs, U-turned to match its “greediest” ever reading from 2019 on Tuesday — 95/100.

A reliable sentiment indicator, Fear & Greed has called Bitcoin more volatile movements over the past three years, its rise coinciding with a similar scenario for the traditional market equivalent.

markets report bitcoin price
The Crypto Fear & Greed Index is back at all-time highs. (Photo:

Nonetheless, with the latest spot price highs, Bitcoin has now delivered profit to every single investor who bought it in its twelve-year history—no one who “hodled” has lost money.

“Congratulations to the majority of crypto twitter, you are finally break even on your position. It has been a hard 3 years,” trader Michaël van de Poppe summarized in tongue-in-cheek comments on Tuesday. 

At press time, the results of the drop were still playing out, with BTC/USD breaking support at $19,000 after a modest bounce to dive to $18,100, followed by another bounce back to $18,900. 

Long-term confidence showed little sign of dwindling among Bitcoin stalwarts, with Samson Mow, CSO of Blockstream, adding:

“Prediction: 2021 is just going to be new #Bitcoin ATHs every few days.”

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.