Bitcoin dropped by 5.4% to test from the 10,800 levels. The drop began at the break of the new day with a huge plunge from 10,600 to 10,200 at around 3: 00 hours.
Bitcoin [BTC] selling pressure dragged the cryptocurrency markets along with it once again as the total market capitalization lost about $10 billion dollars. The dominance of Bitcoin over other cryptocurrencies remained strong around 69%.
The price of Bitcoin at 5: 20 hours UTC on 21st August 2019 is $10,200. It is trading 5.12% lower on a daily scale.
The altcoins are bearing equivalent losses to Bitcoin at the moment. Hence, the price with respect to Bitcoin is still intact. However, altcoins are already under a lot of selling pressure. Ethereum [ETH] and XRP lost 5.29% and 4.5% on a daily scale, dropping below $190 and $0.27 dollars respectively.
The US stock markets are also facing mixed sentiments as the risk of equities has increased considerably. Dow Jones closed below $26000 level on 20th August, Monday. Nevertheless, it rejected bearish pressure last week as it reversed at $25471.
The following weeks will be decisive in determining the market sentiments towards risk-off assets like gold and Bitcoin. A further rate cut from the US Fed is likely in the near future as Trump looks to strengthen the dollar.
The Fear and Greed index of Bitcoin plunged as well along with the price. While no adverse news has been revealed, the index is currently testing monthly lows. The volume on the selling pressure is, however, low at the moment.
Do you think the price will drop below $10,000 or a bullish break is on the horizon? Please share your views with us.
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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