The cryptocurrency markets took broke further bearish as Bitcoin slid below $10,000. The total market capitalization of cryptocurrencies lost close to $7 billion.
Bitcoin plunged on Wednesday to test support near $10,100. However, the selling continued and a bounce above $10,100 was seemingly improbable. The price of Bitcoin at 4: 30 hours UTC on 22nd August 2019 is $9979, after testing lows near $9750 earlier.
Hence, there is a lot of uncertainty in the market. The trading volume in Bitcoin has decreased considerably over the past few days. Moreover, analysts are suggesting a big break soon.
B.Biddles, crypto-trader, suggested negative market sentiments. He said that “Big vol. is in selling” and “breakouts have been quickly cannibalized and turned into breakdowns.” Hence, the Bitcoin bag holder is a bear in the short term.
Moreover, Sawcruhteez, crypto-analyst and trader, noted that he “Will be expecting a big move to follow once this structure breaks.” The structure formed is a triangle which is testing its bearish limits for now. However, a break to the upside is also possible.
Altcoin Vs. Bitcoin
The altcoins also took equivalent losses to Bitcoin as its dominance stayed around 69%. Willy Woo, crypto-analyst, has suggested from his statistical analysis of Bitcoin and altcoin momentum, that altcoin “may be heading into a region of support.”
The altcoin trader sentiments are more vulnerable than Bitcoin as their perceived value is losing importance. Willy Woo noted,
All alts are valued on people parking money in them. Speculation. No different from BTC. Alts have no utility valuation. Zilch…
Peter Brandt, another chart analyst, predicted that the support regions might be very low. Being cryptic as its best, Brandt, seems to be suggesting a bearish head and shoulders on altcoins – BCH, XRP and LTC.
It is not all peachy keen in Cryptoville. But hey, they are just lines and all critics of TA know that lines mean nothing. $BCH $XRP $LTC pic.twitter.com/GJq5L9jO9h
— Peter Brandt (@PeterLBrandt) August 21, 2019
Nevertheless, Bitcoin’s technical limitation with scalability has also prevented its widespread adoption. Hence, development and increased acceptance from global authorities will be paramount to price movements.
Do you think that hodlers will continue selling or wait for the next break-out? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
