Out of the first 100 cryptocurrencies in terms of capitalization today, only five are above parity: in fact, the crash of Bitcoin is affecting the whole sector.
Only NEM (XEM) and Flexacoin (FXC) are clearly against the trend, up by more than 7%, followed by Verge (XVG) and Chiliz (CHZ) both just above 5%. Followed by Synthetix Network (SNX) +2.3%.
For the umpteenth time, the psychological threshold of 10000 dollars proves to be an impassable barrier for Bitcoin. Since October 2019 all attempts to climb above this level have failed.
Even yesterday, after a push that brought the quotations to almost $10500, a level already tested without success last February, suddenly sales began which in just over 5 minutes have led bitcoin to a price crash of over $1,000, testing the $9,150.
A violent crash of 10% accompanied by high volumes, cancelling out the rises accumulated in the last 3 days.
As it happens in these tense phases, the crash has involved the whole sector with losses for all the main altcoins.
Among the heaviest drops in the Top 20, EOS is the one that has suffered the heaviest sales, losing more than 12% from yesterday morning’s highs ($2.90): a loss that is smoothed by the reaction of purchases in the last few hours with prices trying to recover the $2.68.
Yesterday’s ups and downs recorded a modest trading volume across the industry with over $115 billion, staying at last week’s average levels.
This is different for Bitcoin, which with $4.4 billion recorded the ninth highest trading day since the beginning of the year. The institutional options market on the CME (Chicago Mercantile Exchange) with over $44 million, yesterday reached the third-highest volume since its launch last January.
The repositioning of wallets in recent hours is also measured by the increase in trading volumes on stablecoins with total capitalization that for the first time exceeds $10.8 billion, with Tether recording a new record rising above $9.2 billion despite a decrease of more than 2% in market share from last week’s levels.
Credit to DAI – a stablecoin anchored to the exchange rate with the US dollar but with collateral in cryptocurrencies – which in less than 2 weeks saw its capitalization go from $11mil to over $120 million, reaching 1.1% of market share.
After reaching the highest peak since last February, total capitalization loses $26 billion in less than 24 hours, returning just under $270 billion in the last few hours.
Bitcoin’s dominance remains just over 65%. The market share for Ethereum is also unchanged at 9.8%, while XRP continues to fluctuate at the lowest levels in the last 3 years, around 3.3%.
The Bitcoin crash
The drop of yesterday brings back the Bitcoin prices to test the lower neckline of the bullish channel that has been accompanying the bullish trend since mid-March. Level of dynamic support that now becomes an important bulwark to defend in order to continue to support the rises in the coming days. A drop in prices below $9200 would trigger the first mid-term bearish alarm with first bearish targets in the $8,600-8400 area.
Only with prices below these last levels would the medium-long term trend start to turn downwards. On the contrary, a recovery above $10,000 would provide a clear signal of strength to update the annual highs.
The push of the last few hours has prompted prices to test the $250 area, level of the upper neckline of the bullish channel started in mid-March. From this level began short term coverings with declines that in the last few hours have brought prices back to the levels of late May, area 230 dollars.
The fall does not affect the bullish trend of the last 3 months with prices remaining within the channel. Only a decline below $225 would give a first sign of a possible mid-term decline that would end with the break of $215, in correspondence with the lower support of the same bullish channel.