Bitcoin Loses Key Support as Bears Continue: ETH Tumbles Towards $2K (Market Watch)
Bitcoin has failed to continue its recovery and has dipped by roughly 4% to below $54,000. Most alternative coins have suffered even more, with the total market cap losing $150 billion in a day. Yet, Dogecoin is the apparent exception with a 25% surge to above $0.4.
Bitcoin Falls to $54K
As CryptoPotato reported over the weekend, the primary cryptocurrency experienced a massive price slump. The asset fell by approximately $9,000 in hours to a 3-week low of $51,500.
Bitcoin bounced off somewhat rapidly and regained more than $6,000 in the next 24 hours. This led to yesterday’s high above $57,500. However, the situation has reversed once again, and BTC headed south.
The cryptocurrency has lost over $3,500 of value since then and currently struggles beneath $54,000. Additionally, its market cap has dropped below the coveted $1 trillion again. This also means that BTC lost a key support level — the 50 DMA. Crypto analyst and commentator Lark Davis estimated that the average period “of pain” is approximately around 12 days.
The enhanced volatility in the market also resulted in more pain for traders. Bybt data shows that the liquidations in the past 24-hours are more than $1.3 billion.
The technical indicators suggest that the following support lines are situated at $51,440 and $50,000 if bitcoin continues with its freefall. If it reverses the price trajectory, the asset would have to overcome the resistance levels at $55,400, $56,280, and $58,355.
Alts Bleed Out; Dogecoin Surge
Most alternative coins mimicked their leader’s performance in the past few days with vigorous nosedives on Sunday and promising recovery attempts yesterday. Today, though, they have it worse than BTC.
Ethereum is more than 7% down on a 24-hour scale and has dropped beneath $2,100. Binance Coin (-6%) is below $500. Ripple (-16%), Cardano (-10%), Polkadot (-13%), Litecoin (-10%), Bitcoin Cash (-13%), Uniswap (-8%), and Chainlink (-12%) are also deep in red.
There’s one apparent exception from the top ten that doesn’t fall in the price drop category — Dogecoin. The popular meme coin has spiked by 20% in a day and the whopping 455% in a week to $0.40. As a result, DOGE is now the fifth-largest crypto by market cap.
The situation with the lower- and mid-cap alts is somewhat similar. Helium leads the adverse trend with a 22% drop. Nano (-20%), Kusama (-20%), Harmony (-17%), 0x (-17%), IOST (-17%), IOTA (-17%), OMG Network (-16%), Bitcoin Gold (-16%), Tezos (-15%), and Algorand (-15%) are just some of the other massive losers since yesterday.
Ultimately, the crypto market cap has lost more than $150 billion in a day and is down well below $2 trillion.