Bitcoin market capitalization has just been blitzed by $12 billion as it failed to hold support and fell back below $8,000. This has led to a market wide rout of $25 billion as altcoins start to bleed again.
Bitcoin Below $8k
For the past day or so Bitcoin has remained around $8,500. A couple of hours ago that support zone failed and BTC plunged to $7,980 in an 8 percent slide. The candle stack up has started to look ominous and the close below $8,200 yesterday could lead to a wider scale market rout. The recent lower high and today’s lower low could be the beginnings of the big correction everyone has been expecting.
Day trader ‘Jonny Moe’ has noticed that the move has taken BTC back to the 30 day simple moving average;
Continuing on the theme of moving averages, ‘CryptoFibonacci’ sees them still being a big part of the support zones that Bitcoin could see this month and possibly beyond, depending on how deep the correction runs;
“$BTC Daily moving average chart. Still one of my more favorite charts. All the moving averages are still providing support, but as said a while back, price would come back to retest. We are heading there now. Volatility is UP. Big price swings coming.”
Fellow trader ‘Credible Crypto’ has posted a number of corrective patters for multiple crypto assets, adding; “The running flat could very well be playing out, sending us up for that final leg to 9.2k+ BEFORE we come down to the 6.5k and 7.2k levels that I am interested in buying. If we take back 8.6k, I am bullish to 9.2k+.”
A pullback has been expected and always happens after markets go parabolic so there should be no concern. That is unless Bitcoin prices fall way below $6k which at the moment appears unlikely. It could be that the 30 percent pullback figure comes into play, and a correction of this magnitude from Bitcoin’s recent high would drop it to $6,300.
Altcoins Offloaded
Asian traders are offloading altcoins at the moment with Ethereum sliding 8 percent below $250, XRP dropping 9 percent to $0.41, Bitcoin Cash getting smashed 10 percent to $395, and EOS losing out to Litecoin in a 12 percent dump below $7.
Other altcoins in double figure pain today include Cardano, Tron, Monero, IOTA, Tezos, NEO and NEM. Total market cap has shed more than $25 billion over the past 24 hours in a dump equaling last Friday’s purge of similar magnitude.
