Will the $9000 mark hold?
The Bears are taking over again on Sunday and the market leader is slipping towards the important 9000 USD mark. Until now, this trend line has been considered a reliable bulwark against the dump into the unknown. However, several indicators now speak for an imminent price slide. We take a look at the current market situation.
Bitcoin price current
At the time of this writing, the No.1 crypto currency is trading at a rate of USD 9036, representing a daily loss of 0.36%. What at first glance looks like a typical consolidation, in reality reflects the fierce battle at the 9000 USD support. The bears have been pushing the price down for days, and short-term recoveries quickly turned out to be weak liberation shots without consistency. This is due to a low trading volume of just under USD 13 billion. But where does the disinterest of investors come from?
The fear of the second wave reaches into crypto-space
The number of new infections is rising dramatically in the USA and the global economy is trembling before a second wave. The consequences of the coronavirus pandemic extend as far as crypto-space. For months, Bitcoin has been orienting itself towards the traditional markets. Even after the halving, the “digital gold” was unable to achieve a sustainable isolation from Wall Street. With a market cap of around USD 260 billion, the block chain sector lacks capital by international standards.
Here are the next limits
From a bullish perspective, the next resistances are at 9200 USD and 9300 USD. However, the focus of traders in these hours is on the important USD 9000 level. A longer-term breach of it could have dire consequences. The trading volume is at a level last seen in March 2020 and the daily RSI is also pointing down. Should the bears remain in command, the next supports would be around $8825 and $8600.
Bitcoin continues to dominate
The Bitcoin Dominance Index currently stands at 64.3%. Obviously the alternative assets can gradually regain smaller market shares, but it is still far from being enough for an “Altcoins Season”. The DeFi-Coins Compound (+ 14 %), Synthetix Network Token (+ 6 %) and Loopring (+ 9 %) also stood out from the competition on Sunday. Cardano (- 2 %) can defend its 8th place in the crypto charts, despite a small correction.
In the night to Monday, the bulls and the bears struggle for the captain’s armband at the USD 9000 mark. On Monday, however, the crypto-market is likely to be oriented towards Wall Street, as in the previous weeks.