The Rollercoaster Day for Bitcoin
What a day it has been for Bitcoin traders! After a wild morning, the crypto giant decided to join the party trick of falling prices, culminating in a 28.35% drop from $7,650 to $5,500. And just when we thought it couldn’t get worse, voilà! Another 24% nosedive hit us at 11:00 (UTC), dragging Bitcoin down to a mere $4,679.
Market Cap Meltdown
As the price plunged, Bitcoin’s market capitalization didn’t just take a hit; it participated in an extreme cheerleading routine, dropping a staggering $48.3 billion from $137.8 billion to $89.5 billion — the most brutal drop since 2013. Talk about a rough day at the office!
2020 Gains Down the Drain
To add salt to the wound, Bitcoin’s gains for 2020 have officially evaporated, and the asset finds itself 58.07% down from its high of $10,500. Remember that happy feeling from less than a month ago? Yeah, it’s gone, probably having a margarita somewhere.
What’s Fuelling This Frenzy?
Could it be the infamous COVID-19? Oh, definitely. The pandemic isn’t just threatening our health; it’s also wreaking havoc on global markets. Futures trends show doom and gloom as the Dow and S&P 500 futures look like they joined Bitcoin’s downward trend. The situation has investors gripping their seats as traditional markets falter alongside cryptocurrencies.
Federal Reserve’s Attempt to Save the Day
Adding a dash of desperation, the U.S. Federal Reserve announced plans for a hefty $1.5 trillion market injection. Unfortunately, the first $500 billion didn’t do much more than offer a temporary band-aid. The Dow finished down a record-breaking 10%, leaving many to wonder if the Fed’s money guns even have bullets.
Support Levels and What Lies Ahead
As of now, Bitcoin has staged a slight comeback, bouncing back around 9% to trade at approximately $4,800 — but don’t pop the champagne just yet! A long-legged doji candlestick signals uncertainty in the market, and the lack of strong buying volume has traders hesitating to dive back in.
Caution Ahead for Traders
The technical charts are whispering warnings, as Bitcoin sliced through critical support levels like $5,500 and $5,200. If things don’t turn around soon, we may see BTC test its last defenses at around $4,030. Below that, brace for impact as Bitcoin could dive towards the $3,000 range — a level we haven’t seen in two years.
The Broader Crypto Market’s Response
As Bitcoin juggles its way down, altcoins are having their own disastrous day at the spa. Ether (ETH) plummeted 43.06%, Bitcoin Cash (BCH) suffered a 42.85% loss, and XRP is currently hanging on at a multi-year low of $0.13.
Conclusion: Surviving the Crypto Car Crash
As the dust settles, the overall cryptocurrency market cap now sits around $135.8 billion, with Bitcoin’s dominance at a slightly robust 63.7%. For traders, the best advice right now might just be: keep your helmet on and hang tight! The crypto waves aren’t calming down anytime soon.
+ There are no comments
Add yours