HomeTradingBitcoin loses value and returns below $11,000

Bitcoin loses value and returns below $11,000

On a mostly negative day for the cryptocurrency industry, Bitcoin loses value and breaks the psychological support level of $11,000. 

Source: COIN360.com

Today, more than 70% of the first 100 cryptocurrencies show a prevalence of negative signs. Among the first 10, only the green signs of Bitcoin Cash (BCH) and Bitcoin Satoshi Vision (BSV) emerge, with increases of more than 3%, in clear contrast to the trend of bitcoin, which in recent hours has lost more than 6%. Bitcoin goes below the psychological level of 11,000 dollars and below the technical level of 10,800-10,600 dollars, a crucial monthly support level.

For bitcoin, August proves to be a decidedly volatile month, similar to last year when approaching mid-August, there’s a drop from the 8-day highs that saw prices lose about 15% of their value. This weighs on the entire sector. Ethereum, Ripple and Litecoin also fall, losing over 1%.

Bitcoin Cash chart by Tradingview

Only Bitcoin Cash is an exception and consolidates the 4th position in the ranking of the most capitalised.

Among the best of the day, besides Bitcoin Cash, Chainlink (LINK) shows a countertrend by recovering 2.5 dollars after more than 10 days.

ChainLink chart by Tradingview

Chainlink is now on the third step of the podium with a +7%. The best of the day, however, reflecting the other bitcoin forks, is Bitcoin Gold (BTG), which scored the highest rise among the top 100 with a +15%.

In contrast, the most noticeable fall is that of Monero (XMR). In recent days it was the only one to follow the upward trend of bitcoin, now down 7% from yesterday morning levels. There is also Ren (REN), with a 10% drop, one of the worst of the day.

Lastly, Zilliqa (ZIL) continues its strong bearish phase and today sees another -6% as confirmation of the trend that has characterised it since last mid-June. A two-month downturn that has cost it 70% of its value. A very dangerous trend for this token, which was also abandoned by its founder. 

The decline brings the total market cap back to 280 billion dollars, levels that have not been recorded since the beginning of the month. Despite the downturn of these hours, bitcoin’s dominance remains above 67%. Since mid-July, i.e. more than a month ago, bitcoin has been able to consolidate its market share above 65%. Ethereum recovers 8% of the market share, while Ripple recovers a few decimals and returns to 4.5%.

The low volatility of the sector continues to persist and in recent days it has seen the average fluctuation of the last month fall below 4%, about half of what was reached in mid-July when volatility had risen to almost 7%. This is the highest level since February 2018. This attracted the attention of the Bears, who since yesterday have again overtaken the market and caused most of the cryptocurrencies to turn red.

But what creates particular friction at the moment is the fear and greed index which, with the falls of these last 24 hours, drops to the lowest levels of the year. Confidence in these hours drops to 11 points on a scale from 0 to 100, the lowest level since December 2018. 

The decline in recent hours is accompanied by an increase in volumes that rise 20% above the average of the last week. Among the highest trades, Bitcoin Cash is the 4th most traded cryptocurrency in the last 24 hours, with about 4% of the total volume, after Litecoin, Ethereum and bitcoin. In the last 24 hours, BTC reached a trading volume of 6 billion dollars, raising the average above the level of the last two weeks.

Bitcoin chart by Tradingview

Bitcoin (BTC) loses value

Bitcoin retreats and loses value. With the breaking of the support of 10,800 dollars, support that until mid-July was former resistance, the next target is a possible test in the next hours in the 10,200-10,000 dollar area. The most important level from a technical point of view is $9,800. If this support is broken on a monthly basis, prices could be attacked by further speculation and the return to the $9,500 area, levels abandoned at the end of July, cannot be excluded.

Upwards, in this context, it is necessary to reach 12,000 points, which seem to be a level that has now been abandoned on a weekly basis, partly due to the failure of the rupture due to a lack of purchases. This has only attracted the attention of the Bears who have returned to the attack.

Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum finds itself battling with a support level at 205 dollars, a level with major technical levels in terms of both the retracement values of Fibonacci, as well as supported by the meeting of the dynamic trendline that supports the bullish trend of Ethereum, which began in early February. 

For Ethereum, the scarce volatility and the lack of oscillations from an intraday point of view indicate at this time a lateral trend that confirms the levels of resistance and upward breaking in the $225-235 area, whereas downward the $200 area is a psychological level and the $190 is a technical level.

Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".