The Twists and Turns of Bitcoin’s Value
On February 26, Bitcoin (BTC) found itself in a precarious position, trying to cling to the $9,000 support level like a cat hanging onto a curtain rod during a thunderstorm.
The Brief Dance Below $9,000
According to data from various market sources, BTC/USD wobbled and briefly dipped below the crucial $9,000 mark multiple times throughout the day. In just three short days, Bitcoin had dropped over $1,000 from its earlier heights. When the dust settled, it was trading at around $8,995—a sharp 4.3% tumble that wasn’t exactly the dollar store discount Bitcoin traders had hoped for.
Market Influences: When Hope Meets Reality
Traders were initially optimistic that Bitcoin would bounce back from the tumult left by the coronavirus crisis in traditional markets. Spoiler alert: that didn’t happen. Instead, Bitcoin followed the broader economic decline, leaving traders clutching their crystal balls in confusion.
Key Price Points to Watch
Amid the chaos, observers began eyeing critical price levels, particularly the 200-day moving average (DMA), currently hovering at $8,789. Cointelegraph Markets analyst filbfilb offered a more pragmatic stance, advising:
“Downside targets or the 200 DMA, 20 and 50 WMA seem good for a bounce but the 200 DMA is never really lost in a bull run, so losing that could be more of a significant issue.”
The Role of Gold: A New Gold Standard?
Veteran trader Peter Brandt entered the fray, highlighting a curious trend: Bitcoin’s inability to rise while gold prices surged. According to Brandt, this should have sent caution signals ringing through traders’ heads like an alarm clock on a Monday morning.
The Gold Medals of 2020
At one point, gold enjoyed a 4.6% profit since its upward trajectory ignited on February 12, not to mention year-to-date gains of 7.2%. Meanwhile, Bitcoin was engaged in a classic case of ‘hold my beer’ with its earlier 40% gains this month, challenged by the specter of failing to rally.
Altcoin Blues: The Ripple Effect
As if Bitcoin’s performance wasn’t concerning enough, altcoins faced even harsher realities. For instance, Ether (ETH), the prolific altcoin with a substantial market cap, fell almost 10%, sliding down to $228, while Litecoin (LTC) faced a 12% drop, alongside Cardano (ADA), which saw a 14% reduction in its value.
The Market Overview
The overall cryptocurrency market cap witnessed a dramatic decline, hitting $255 billion, a staggering decrease of $27 billion since the weekend. Surprisingly, despite Bitcoin’s struggles, its market dominance grew to 64.7%, showing that even in chaos, it can somehow take the crown.
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