Cryptocurrency markets have accelerated losses this morning. Bitcoin has fallen through a key support level but its market dominance is climbing again as altcoins get eaten alive.
Digital asset markets have continued their declines this week with a further $16 billion being dumped over the past 24 hours. Altcoins are being hit hard as predicted which has had the effect of increasing Bitcoin’s overall market dominance.
Since the weekend cryptocurrency markets have lost almost 10% and are seemingly being dragged down by Bitcoin.
Bitcoin Beneath Critical Support
Bitcoin has taken another dive today as it plunges below critical support at $9,300. At the time of publishing, BTC hit $9,100, down over 5% on the day.
BTC is currently trading below the 50-day moving average as the downtrend accelerates and the correction gathers momentum. The largest red weekly candle since mid-November is currently forming as the king of crypto struggles to hold this support level.
If it fails to maintain this level, a drop to around $8,800 is expected. A pullback has been largely anticipated, but a move to the low $8,000 range would wipe out nearly all gains made so far this year.
The only positive thing to emerge from this week’s struggles is a climb in BTC dominance which has climbed 5.6% from 62% in mid-February to around 65.5% today.
Analysts are mixed on the significance of this metric and one has called it a bullish retest; “I personally think it’s not really relevant but if it is, isn’t this just a bullish retest?”
Bitcoin’s dominance topped 70% in December when altcoins were on the floor but prices then were back at the $7,250 level. However, the total market cap at the time was under $200 billion so there is nothing really bullish about the ratio.
The fall of BTC this week has had the predictable effect of battering altcoins, as many of them are suffering double-digit losses on the day.
Ethereum has been slashed 9% on the day slumping back to $240 and it is likely to fall further as support lies around $230.
Ripple’s XRP is in even more pain with an 11% slide to around $0.24 as it wipes out all recent gains. The red candles are market-wide with BSV, Binance Coin, Tezos, Chainlink, Tron, Huobi Token, Dash, and NEO all seeing double-digit downturns.