- Bitcoin (BTC) Plunges below the $8k Range
- Altcoins Are Also Contributing to the Crumbling Crypto Market Cap
Bitcoin News Today – Bitcoin (BTC) recently corrected higher and broke over the $8,200 mark. However, it appears that a reversal trend has started. The signals have been pointing to a huge downtrend move for BTC and it just plunged below the $8k level again. Could this be the start of Bitcoin’s big dump? Or will Bitcoin find strong support to hold on to?
Bitcoin (BTC) Plunges below the $8k Range
The price of Bitcoin (BTC) plunged below the $8k level a few hours ago; this is the 5th time the digital currency is plunging below that level this month. Data from Tradingview.com revealed that BTC started heading south in late US trading yesterday, and the trend continued into the Asian session this morning.
Bitcoin (BTC) Price Today – BTC / USD
BTC bottomed out slightly over the $7,900 mark and it seems to have found support at that level at the press time. The bearish signals have been piling up as the month-long consolidation period draws out. A major move usually accompanies the compilation of such signals, and one is expected in the short-term.
Josh Rager – a digital currency analyst and trader – recently noted that historical volatility is reducing to levels that would indicate a breakout. In a statement, he said:
“With a slow sideways market, we will see descending HV that indicates a strong reaction in price action ahead and rise in volatility.”
Yesterday, Rager pointed out a Bollinger Band (BB) squeeze that has also led to breakouts in the past. He said that with BTC price still below the 20-day moving average, it is more likely to head south.
Altcoins Are Also Contributing to the Crumbling Crypto Market Cap
Clearly, alternative coins have not been able to decouple from BTC as it has plunged by 42 percent from its year-to-date high. No altseason is in view and the majority of altcoins in the market are in the red. Recently, a Twitter user – Trading Room – spotted a trendline for total market capitalization that could result in a huge dump below $200 billion if broken. The Twitter user said:
“This one Trendline is holding the entire Market’s fortune for the next few weeks.”
The valuation of the entire crypto has plunged by about $7 billion over the past day, and it is currently at $217 billion. The crypto market cap has not dropped below $200 billion since early May when the bulls were still in charge of the market.