Following a largely bullish week for the majority of crypto assets, the bears have come out to play at the weekend. A slide back into four figures for Bitcoin has dragged most of the altcoins back down with it as $10 billion leaves cryptocurrency markets.
Crypto Market Cap Slides Again
A steady decline has resulted in total crypto market capitalization falling back to just above $260 billion. Daily volume has also dumped from over $70 billion on Friday to around $50 billion today according to Coinmarketcap.com.
Total market cap 48 hours – Coinmarketcap.com
The move has been initiated by Bitcoin which has failed to hold ground above $10k yet again. The slide started late Friday after a brief top of $10,300. BTC eventually bottomed out at around $9,850 according to Tradingview charts and recovered slightly to trade at $9,940 where it has currently settled.
The descending triangle pattern is clearly defined and analysts have predicted moves in either direction however the low side looks like the better bet when the breakout finally occurs.
Are you team green or team red?
Tick-tok$BTC #Bitcoin pic.twitter.com/G3zoAIex13— Squeeze (@cryptoSqueeze) September 22, 2019
With over two months of range bound action traders are yearning for a bigger move in either direction to break the monotony. Analyst ‘CryptoHamster’ has been looking at the Mayer Multiple which is a way to gauge the current price of Bitcoin against its long range historical price movements. The indicator also highlights when BTC is overbought or oversold in the context of longer time frames.
“Mayer Multiple is well below its moving average – in the zone where corrections usually bottom. So, it is either already over, or we will hit that 1.09 value.”
$BTCUSD, 1D.
Mayer Multiple is well below its moving average – in the zone where corrections usually bottom. So, it is either already over, or we will hit that 1.09 value. $BTC #bitcoin pic.twitter.com/ng5Rll2hjt— CryptoHamster (@CryptoHamsterIO) September 22, 2019
A drop to that level would see Bitcoin prices back around $8,000 again but they are unlikely to remain that low for long. The buyers have always been able to push prices back into five figures but no new money is entering the markets at the moment.
Maybe Monday’s Bakkt launch can generate some much needed momentum so this could be the final dip.
Altcoins Suffering Again
Last week there was renewed hope that some of the altcoins, namely Ethereum, has started to move independently of their big brother. ETH is still up 17 percent since the same time last weekend but it too has started to slide. Ethereum is down 3 percent on the day and is currently trading just above $210.
The pain is greater elsewhere with Ripple’s XRP dumping back below $0.28 again and Stellar mirroring its movements. The red is deepening for most cryptocurrencies this Sunday with EOS, Binance Coin, Cardano, IOTA, NEO, and Cosmos all losing over 4 percent.
Bitcoin dominance is clinging to 70 percent but with altcoins sliding again it seems safe for now.
Image from Shutterstock
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