Digital asset markets had started to recover over the past day or so but the Bitcoin bulls could not overcome resistance levels. The correction has resumed with an almighty dump overnight.
Cryptocurrency markets were just below $300 billion in terms of total capitalization when Bitcoin fell off a cliff. All of the altcoins followed like digital lemmings.
Within a couple of hours, the total cryptocurrency market cap had dumped $20 billion — falling back below $280 billion again.
Bitcoin Hits Lower Low
The Bitcoin pullback is back in play as the asset dumped to a lower low of $9,300 according to tradingview.com. One massive red candle dumped almost nine percent in just one hour.
Analysts had predicted a resuming of the correction if Bitcoin, which is still outperforming gold, could not break resistance at $10,250 to make a higher high. The bears have dominated and the sell orders were triggered. At the time of writing, BTC was trading at support around $9,600 — but it could possible fall further to the next level which lies around $9,300.
Zooming out to the daily chart shows further support in the high $8k region then a solid level at $8,200. A move to this level would result in a 22 percent correction. A larger correction of 40 percent could dump prices to $6,300 — but this is unlikely at the moment.
It appears that the uptrend has been exhausted, for now, which is often the case following a sustained period of solid gains.
As expected, the altcoins are dumping too with painful losses for many of them.
Ethereum, which has been on fire lately, has shed around seven percent in a fall back to $260. This is still higher than its low earlier this week — so ETH is holding on to gains, for now.
Ripple’s XRP is faring much worse with a similar loss, but it has never really recovered from the first pullback and is now trading in the $0.27 region.
Bitcoin Cash (BCH) has mirrored big brother’s losses with nine percent shaved off. Bitcoin SV (BS)V and Litecoin (LTC) are in similar pain. EOS has been absolutely trounced with a 13 percent dump back to $4 while the usually resilient Binance Coin (BNB) has shed eight percent on the day.
The only survivor at the time of writing is Tezos resisting the altcoin avalanche and adding five percent.