After holding up well earlier this week against the stock market sell-off, Bitcoin finally enters correction slipping below the crucial $13,000 in a market-wide sell-off. At press time, Bitcoin (BTC) is trading 3.23% down at a price of $12,980 with a market cap of $240 billion.
At press time, the overall cryptocurrency market looks under pressure with all other top-ten cryptocurrencies correcting 2-7%. Ethereum (ETH) is down 2.33%, XRP by 4%, Bitcoin Cash (BCH) down by 4.06%, Litecoin (LTC) down by 6.35% and Polkadot (DOT) losing the most at 6.5% negative.
Over the last 24 hours, the overall cryptocurrency market has lost $30 billion in market cap. Interestingly, as other altcoins lose the ground, the BTC dominance in the market extends to over 62%.
The crypto market sell-off comes just a day after Dow Jones lost over 100 points on Wednesday, October 28. As we approach closer to the U.S. Presidential Elections, the stock market volatility surges, and correction deepens. Over the last five days, DJIA (INDEXDJX: .DJI) has corrected by 2000 odd points and is currently trading at 26,519 levels.
BTC Corrects Over 5% In the Last Two Days
Over the last two days, BTC has corrected nearly 5% after inching closer to $14,000 levels. The $14,000 remains a strong macro resistance for BTC above which we can see the next bull rally in the market. Speaking to Bloomberg, Edward Moya, a senior market analyst at Oanda Corp said:
“This broad, risk-aversion-trading session is triggering widespread panic selling, which is seeing every risky asset, like gold and Bitcoin, really start to plummet”.
The Bitcoin correction came after the 14-day relative strength index (RSI) reading passed 70 suggesting the overbought regions. Adding to it Moya said: “I think that $14,000 is a very key threshold. Once that level is taken out, there is going to be a lot more upside here.”
Crypto enthusiasts are confident that Bitcoin will manage to sail past all hurricanes going ahead and emerge as a potential hedge against rising inflation.