Over $20 billion has exited cryptocurrency markets in the past 24 hours as Bitcoin nosedived through its psychological support barrier at $10k. The move, which has been largely expected among analysts, has sent the altcoins into the digital abyss yet again as markets bleed out today.
BTC Leads Massive Crypto Purge
In what has been one of the largest dumps of the year, $20 billion has exited the crypto space plunging total market capitalization down to $245 billion. It is the first time market cap has dropped below $250 billion since early June according to Coinmarketcap.com.
The three month low has been a direct result of Bitcoin’s failure to hold a five figure price level. The world’s most popular digital asset reached the end of a pennant formation and made a brief climb to $10,250 before a massive thousand dollar slide which bottomed out a couple of hours ago. The fall took BTC all the way down to $9,330 before a slight recovery back to support turned resistance at $9,400 where it currently trades.
Analysts are now warning of a further dump into the $8,000 level if Bitcoin cannot hold on to resistance just over $9k. It is the sixth time the asset has fallen into four figures and each previous as resulted in a recovery back above $10k.
This time feels a little different though, and there are a lot of technical support indicators such as Fibonacci retracements and long term EMAs lining up in the mid-$8,000 zone which things are not far away from at the moment.
As usual BTC has driven all of the altcoins off the crypto cliff like the digital lemmings that they are. With its market dominance still above 70%, even after a 9% crash, Bitcoin is still king. Ethereum has dumped to a four month low of $170 as it lost 10% overnight. Since late June ETH prices have been slowly eroded along with the rest of the altcoins which appear to be heading back into crypto winter.
Ripple’s XRP token has been battered back to its yearly low of around $0.25 and Bitcoin Cash is down a similar amount wallowing around $280. Litecoin has been melting since its pre-halving pump with the asset dumping 12% today in a fall back to $65.
Binance Coin is also in a world of pain getting smashed 13% back to $22 and allowing Tether to flip it for sixth spot in terms of market cap. All of the major altcoins are bleeding out at the moment, many such as Monero, Cardano, Tron, Dash and Chainlink dumping double digits.