Today’s focus turns immediately towards the price of bitcoin recording another loss of 6%, following yesterday’s sinking which reached almost 10%. The fall came in the second half of the day and in just 2 hours saw the price of bitcoin drop by 600 dollars. The movement continued over the course of the evening, with prices plunging below $7,400.
As always, bitcoin dragged the entire sector, causing some altcoins to fall by 10%.
Ethereum tries to decelerate the loss by stopping at -4%. Ripple has the same bearish intensity as BTC with a movement of -6%.
To find the first positive sign among the altcoins it is necessary to go down in 14th position where there is Chainlink (LINK) gaining 3%. Basic Attention Token (BAT) in 27th position tries to stay hooked above +1%. LINK and BAT are the main altcoins going against the negative trend, being among the few positive signs of the day.
The other in green is BitCapitalVendor (BCV), an unknown token but which today enters the top 100 with a +5%.
On the other hand, the worst decline is that of Icon (ICX), which loses 12%.
The strong bearish movement causes the market cap to collapse just above the 200 billion capitalisation, levels not seen since last May.
The dominance of bitcoin remains above 66%, at the levels of recent periods. The downward movement does not negatively affect Ethereum, which since yesterday has recovered a few decimals of capitalisation pushing over 8.5%. XRP is now at 5.7% of the market share.
This shows that the downturn is draining liquidity from the smaller altcoins towards the main cryptocurrencies, as evidenced by the market cap of the first three, unchanged or increasing.
The strong downturn in the last 24 hours, which is causing sales, has caused volumes to rise sharply, now at very high levels that had not been recorded since the previous downturn in mid-August.
It emerges that the trades on the Bakkt platform, which offers futures with bitcoin as the underlying, have been setting an absolute record since their launch on September 23rd. In the last 24 hours, Bakkt has traded 653 contracts with the ambition to reach 700 futures, for a +650% of contracts traded from the previous day for a countervalue of about 5 million dollars. These levels have never been reached and the previous record of 224 contracts reached on October 9th has been updated.
When analysing what is happening, today’s is the third consecutive day where the red sign prevails, a feature that has already occurred twice in recent months, both in August and September, with movements that ended on day 4.
Therefore, the current phase requires a great deal of attention as the next few hours will be very delicate, since bearish pressure may still continue.
Bitcoin (BTC) price at a loss
With the strong movement of the last few hours bitcoin is still at a loss of about 12% from the relative highs of the beginning of the week. It is the third sinking that bitcoin has scored in the last two months.
The break of the $7,500 sees testing the support that at the beginning of June had ignited the second bullish sprint of 2019, which had brought bitcoin prices to a step from $14,000 at the end of June. From those highs, the downward movement extended to 45% from today’s values. This is confirmation of a bearish trend that has been going on for 4 months.
Bitcoin moves away from the five-digit psychological threshold it had maintained throughout the summer. In these hours, precisely because the statistic has provided for downward movements of the duration of 4 days, it is necessary to maintain the support of 7,400-7,500 dollars, otherwise, it would open spaces to 7,200 and then 6,800 dollars.
Ethereum (ETH) price
The downturn does not push Ethereum below the lows of September 24th in the $155 area, an area that is supported by the latest purchases. A break below $155 would project the first levels of support in the $125-130 area.
In the medium to long term, for Ethereum, it is necessary to recover the 175-170 dollars. But in a bearish context, it is more prudent to be cautious and to observe the holding of the supports.