A sharp rejection of resistance above $ 9k was not quite unexpected. Bitcoin price has been poised to pass this level for the best part of the week.
Crypto Market Cap takes a hit
The move sends $ 25 billion out of digital assets and back into fiat as fears of a bigger correction mounted. Total market capitalization reached a new 2019 high of $ 285 billion when BTC made its move above $ 9k. From there it has been smashed almost 10 percent in a couple of hours plunging back below $ 260 billion.
As usual the altcoins have been hit the hardest. Most of them are still hopelessly coupled to bitcoin, so much that when they get a cut, they hemorrhage. Many were dumping double digits during Asian trading today. Bitcoin SV, following its fake pump yesterday, shed 20 percent while Bitcoin Diamond lost 18 percent.
Ethereum 0 0 fell back to $ 250 in a 10 percent slide and Bitcoin Cash dropped to $ 420 after losing a similar amount. The rest of the altcoins are wiped out in pain at the moment. "
Looking at the bigger picture, a market cap of $ 260 billion is still up 7 percent on the week, 54 percent on the month and over a hundred percent since the beginning of the year.
Will Bitcoin Dump 30%?
There have been many calls for a pullback to this magnitude recently. After all, it has happened eight times during the last uptrend.
If this is the beginning, BTC / USD will return to $ 6k before hitting support and stabilizing. Analysts are still mixed opinion. Trader Josh Rager tweeted:
$ BTC pullback came before the level everyone was expecting … Majority has been running all year and this is another case. Could still bounce from low $ 8k to $ 9k + but would like to see a daily close above $ 8200. Bulls stepping into.
$ BTC Pullback came before the level everyone was expecting
Please read last week's sentences
Could still bounce from low $ 8k to $ 9k + but would like to see a daily close up $ 8200
Bulls stepping in pic.twitter.com/dDrhe6Mudc
– Josh Rager 📈 (@Josh_Rager) May 30, 2019
Bitcoin had stabilized above $ 8,200 after dropping over ten percent in a few hours yesterday. A fall below $ 8k could turn around with the next major support level lying around the $ 7,400 zone. $ 6,000.
Overall, corrections are so market movements over the past 24 hours should not cause concern. The crypto winter is definitely over and over the term 'buy the dip' now on everyone's lips.
Will Bitcoin hold above $ 8k or is the 30% correction inbound? Add your thoughts below
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