USD 10000 limit moves into the far distance
After crossing the trend line at 9600 USD, many indicators on Tuesday spoke in favor of a rapid advance into the five-digit USD range. However, these expectations will not be met today, Wednesday. The market’s leading indicator is set to suffer a sharp setback and the Altcoins are also falling. Let’s take a look at the current market situation.
BTC: The current price
At the time of this article, the No.1 crypto currency is at a rate of 9308 USD, which is a daily loss of 3.53%. In addition, the trading volume (24 hours) slides back below the USD 20 billion mark (approx. USD 19.1 billion). This figure illustrates the cautious approach of investors. From a bearish perspective, investors’ hopes are once again on the support level at USD 9200. Bears have failed to reach this level on several occasions in recent weeks. The next resistance level is the trend line at $9400.
Miner as trigger for the dip?
In a recent article cryptopotato.com points out a possible trigger for the price drop. According to this, 2650 BTC were transferred from Miner to the Bitfinex exchange on the previous day. An enormous sum that could definitely influence the price.
Dow Jones with losses
Another explanation could be the high correlation to traditional markets. The Dow Jones Industrial Average will drop by about 2.7 percentage points on Wednesday. Since the outbreak of the coronavirus pandemic, Bitcoin has been seeking contact with the major stock indices. When Wall Street crashed, the digital currency in the meantime even shot below the 5000 USD mark. At that time, the high volatility benefited the cryptos. No other asset was able to recover so quickly from the consequences of the crisis.
Only yesterday, news circulated through the crypto space that caused a furore among many investors. According to these reports, payment giant PayPal plans to integrate Bitcoin. Should the plans come true, this would be a unique opportunity for the entire block chain sector. With over 270 million users, PayPal is one of the leading companies in the payment sector. An integration could build a bridge between crypto currencies and the mainstream.
Bitcoin dominance index falls
The alternative assets are catching up. On Wednesday the BTC Dominance Index is at 64.4%. The BTC Dominance Index represents the ratio between the Bitcoin market share and the Altcoin market share. Although the Altcoins are gaining ground, independent price breakouts are still considered a rarity. This becomes clear by looking at the crypto charts. Ethereum and Co. follow Bitcoin at every turn. In the top 50 there is no coin with a positive 24 hour chart.