Bears call in
After the bulls were able to hoist the BTC to a new annual high during the night, the price plunges below the USD 11,000 mark in a very short time. In these hours, the leading digital currency may be able to recover, but the sudden collapse could make investors feel insecure. After weeks of consolidation, volatility is returning to the market. Is the bull run history again or is the dump a natural correction? Let’s take a look at what’s happening now.
Bitcoin shoots south
At the time of writing, the signs are pointing to recovery. After crossing the USD 12000 mark, the price suddenly dropped to a level of around USD 10500 in the morning hours. However, investors were able to close this gap at least partially in the past few hours, so that the market leader is currently trading at a price of USD 11148. The trend line at $11000 USD now represents the next support. Further down, the next support lines are at 10800 USD and 10600 USD. From a bullish perspective, the bulls are once again facing resistance at 11200 USD.
The Comeback of Volatility
For weeks, the No.1 crypto currency did not move from the spot before making a bull run in the last week of July. In a rush, the Bitcoin climbed from around 9200 USD to a new annual high of around 12100 USD. Daily gains of over 5% are back on the agenda, but so are declines of this magnitude as of today. These developments imply that the volatility is back. After the third BTC Halving Event, there were initially many indicators that the “digital gold” was more stable and mature. However, this impression could be due to the high correlation to the traditional markets. In addition, investors have pumped over 50 billion into the market in the past 2 weeks, trading volumes are rising and whales are able to execute their orders more easily.
Correction or beginning of the downtrend?
For days, experts have been warning that a correction could be imminent after the bullish chart movement. However, the rapid “recovery” shows how quickly investors can close even larger gaps of over USD 500. At the same time, positions in the double-digit millions have been liquidated today as well. The futures market is booming and traders may be in for a turbulent week.
Ethereum and Ripple in the green
While most Altcoins follow the first mover, Ethereum (2.64 %), Ripple (+ 5.58 %) and Chainlink (+ 10.52 %) are able to defend price gains. All three Coins are considered potential movers for an Altcoin Season. On Sunday, the BTC Dominance Index stands at 61.1 %. According to this the alternative assets continue to shake the dominance of the first crypto currency.