Bitcoin stumbles on Wednesday
The No.1 crypto currency will fall south on Wednesday by about 500 USD. A falling S&P 500 (- 3.53%) suggests that the market leader continues to correlate strongly with traditional markets. At the same time, the alternative assets are suffering severe setbacks. We take a look at what is currently happening in the crypto market.
Bitcoin price current
At the time of this article, the BTC is quoted at USD 13170, which is a daily minus of 3.64%. According to this, the bulls will have to drop their sails for the time being after reaching their high for the year. In the past 24 hours, investors have pulled more than USD 12 billion out of the block chain market and Bitcoin is feeling the effects of the sales.
These limits are now important
From a bullish perspective, investors are focusing on the resistance at $1,300, while the $13,000 mark is providing valuable support. Further up, the next resistance level would be around $13350 (0.618 Fibonacci). A daily volume of around $37 billion and the rising volatility rate argue against a consolidation phase at the $13000 mark. However, a glance at Wall Street causes worry lines for many investors.
Is the S&P 500 pulling down the Bitcoin?
The rising number of new coronavirus infections and the ongoing controversy over the US aid packages are still affecting the US stock market today. On Wednesday, the S&P 500 was down 3.53%, while the Dow Jones slid by over 900 points. After the “PayPal” rally, many indicators spoke in favor of decoupling, but a new slide could also affect the block-chain market.
Altcoins experience small “bloodbath”
The Bitcoin Dominance Index reaches 62.4% on Wednesday. According to this, approximately USD 245 billion of the total market capitalization (approx. USD 392 billion) is currently invested in BTCs. This is a clear distribution of roles, which is still causing problems for alternative assets today. After a dip of – 4.46 %, Ethereum has to say goodbye to the important USD 400 mark for the time being. Further down the line, assets such as LINK (- 5.98 %), Monero (- 6.32 %) and NEO (- 7.34 %) are hit even harder. Due to the enormous dependence on the first mover, the Altcoins become the plaything of the leading crypto currency. A highly explosive relationship…