Bitcoin is currently looking for support from $6,480 level as price takes a 7% dump. The total market cap has lost about $36 billion since yesterday as altcoins fell down in tandem with Bitcoin. Technical analyst and crypto enthusiast, Crypto Yoda shares the Lower low and Higher Low Bitcoin can hit.
Bitcoin takes a severe plunge, testing $6,480 support
Bitcoin is currently trading at $6,497 with a loss of approximately 8 percent in the past 24 hours. The world’s leading cryptocurrency has been struggling with the bears since last week. Since bears first entered the crypto market about 7 days back, Bitcoin has lost about 15 percent of its value.
With a market cap of $111 billion, the daily trading volume has rather risen to $5 billion which is likely to be attributed to the buyers looking to cash out their bitcoin holdings. The decision of SEC to delay the approval of Bitcoin ETF has people going in a frenzy and leading to the Bitcoin sell out.
However, as bitcoin took a hit, a majority of the cryptocurrencies fell down in tandem. A serious plunge has taken over the market as Ethereum (ETH) is down by over 9%, XRP close to 15%, Bitcoin Cash (BCH) about 13%, over 14% drop in EOS, Litecoin (LTC) 12%, IOTA (MIOTA) by 13% and similar drops in other cryptocurrencies as well.
The total market cap is experiencing the loss of $36 billion. Just yesterday, this has been at $256 billion while today the market cap is at $230 billion, at the time of writing. However, BTC dominance has taken a hike to 48.6 percent from 47.3 yesterday, all thanks to the substantial loss suffered by altcoins.
Bitcoin to take out $5755 and generate a lower low: Crypto Yoda
As the Bitcoin takes a drop from $7,100 level and below $6,500 level, technical analyst and crypto enthusiast, Crypto Yoda shared insight into the Bitcoin price movement.
“After recent structure broke downwards, $btc is still trading in iH&S support. critical zone for bulls to hold, opportunity if reverses up from there.”
However, this was when Bitcoin was trading around $6,500 price level. Since then, Bitcoin has dropped down to $6,460 level and before registering a slight upward movement to $6,490.
As aptly asked by a Twitter user, if the support doesn’t hold, to which Crypto Yoda replied:
“The zone becomes resistance instead, further increasing selling pressure. prices would then likely attempt to take out $5755 and generate a Lower Low.
If support holds, it will generate another Higher Low on the daily chart adding buying pressure in the coming weeks.”
The Tweet mentioned above can be read here:
— CryptoYoda (@CryptoYoda1338) August 7, 2018
Another Twitter user commented,
“I don’t think it’s gonna hold tight… BTC has already fallen below the Ichimoku Cloud… Although the RSI has entered the oversold region both the MACD and ADX indicators show the bearish sentiments… In short, we are heading below 6k.”
Crypto enthusiasts and investors are hopeful that Bitcoin will go above $7,000 mark. Though nothing is certain in the crypto market, for now, the prices seem to be aiming for a lower level. Having said that, it takes one positive sentiment to change the direction of price movement upwards as happened with the downwards movement.