Bitcoin falls under important support line
The market leader is getting off to a bad start in the new week and has to accept the fall below an important support line. Nevertheless the price slide of the No.1 crypto currency is still manageable, if one compares this with the collapse of the Altcoins. Many alternative assets are losing in the double-digit percentage range on Monday. We take a look at the current events in the crypto market.
Current BTC price
At the time of writing, the first mover is trading at a rate of 10631 USD, which is a daily loss of 3.06%. For days the Bitcoin was able to rely on the support area at 10800 USD and from there initiate attacks on the resistance at 11000 USD. However, it now looks like a new downtrend is underway and the hopes of bullish investors are falling on the support at $10,600. Should the bears break through this as well, there is even a threat of a fall below the magic level.
Bitcoin Dominance Index approaching the 60% mark
The Bitcoin Dominance Index is rising, although the leading crypto currency is going down. This situation illustrates how hard it hits the Altcoins at the start of the week. Currently 58.4% of the total market capitalization is in BTC investments. The alternative assets are still highly dependent, independent price outbreaks are an absolute rarity.
Why does Bitcoin open the week with such a downtrend?
The reason for the price slide could be the high correlation to the traditional markets. The S&P 500 starts the new calendar week with a downtrend of – 2.58 %, while the Dow Jones Industrial even slides by – 3.26 %. After the halving, many indicators initially spoke of an encapsulation of the Bitcoin. However, since the ricochets at the USD 12000 mark, we have seen that traders are once again looking more closely at events on Wall Street.
Bitcoin: When will “digital gold” become independent?
With a market capitalization of about $336 billion, crypto-space is no longer a marginal market, but it is still small compared to the major stock markets. This becomes particularly clear in the times of Covid-19. Time and again, the traditional markets pull the “digital gold” down. A behavior that the precious metal does not show. The gold price climbed to a new all-time high, as risk-averse investors trust the precious metal in times of crisis. Due to the high volatility and the dependence on the major stock markets, this statement is only partially true for the BTC.
What are the Altcoins doing?
For the Altcoins it is a terrible start into the new week. Many assets have to cope with a dump in the double-digit percentage range. Ethereum slides – 9.37 % south, Polkadot (- 12.93 %) has to leave position 5 in the crypto charts and Chainlink (- 14.25 %) falls below the important USD 10 mark. Further down the road, Uniswap falls 16.30% a day to $4.29. It is a bloodbath for the alternative assets and nobody knows where the bottom is. Once again it is clear that Bitcoin is in command. After a strong performance in the previous week, the showdown at the magic threshold could come again in the coming hours.