Bitcoin tanked 18% after peaking at $11,000 due to unstable trading

Bitcoin new records

Just after reaching record peaks at more or less $11,000, the number one virtual currency suffered a hard blow after diminishing by over $1000 in less than a day.

Recent data from CoinDesk showed that the Bitcoin fell by over 18 percent from its record peak of $11,388.33 to $9290.30 on Wednesday. The digital currency tried to regain traction and reach the $10,000 lever in the late afternoon, however it traded last at around $9,795 since unstable trading was a result of struggling exchanges to contend with the rising demand.

Over the last 24 hours, trading volume was a colossal $9.75 billion that dwarfed the second largest cryptocurrency, Ethereum, which is at $2.26 billion, according to the data from CoinMarketCap.

Reports from Coinbase, the major U.S. website for trading bitcoin, revealed high traffic on Wednesday that resulted in shortage of service for some customers. The GDAX exchange of Coinbase also reported some difficulties, these issues were resolved at about 3:20pm ET.

MKM partners chief technician Jonathan Krinsky described it as “a bit parabolic over the past few weeks”. He also added that today’s activity signifies an “inflection point” and that it maintained a more than 200 percent level in comparison to its 200 day moving average.

The Bitcoin’s accelerated gains caused its record highs. Approximately a week following its crossing from the $8,000 mark, the currency peaked $9,000 on Sunday and it advanced to more than $10,000 on Tuesday evening.

In other digital currency news, data from CoinMarketCap showed that Ethereum traded close to $448, about 14 percent below its record highs earlier in the day while the Bitcoin offshoot, bitcoin cash traded at about $1,466.


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