Market corrections are a natural aspect of their movements so we really should not be surprised when they appear. Analysts and traders have actually been estimating this all week and it has finally been set in motion as Bitcoin and crypto markets crash today.
$30 Billion Dumped as Bitcoin Drops
Total market capitalization has dropped by over $30 billion in 1 day as mass profit taking comes about from assets that have been on fire all week. Starting with a 2019 high of $264 billion yesterday market cap has dumped to $230 billion today as cryptocurrencies shed double digits. The slid has been expected however and markets are still up around 33 percent since the beginning of the month.
Bitcoin has actually doubled in price because the start of April so a pullback is healthy and actually required. Over the past few hours BTC disposed 10 percent, or a thousand dollars, back to simply listed below $7,200. The sharp decrease was set off during the morning's Asian trading session following a day with Bitcoin trading just below $8,000.
Crypto traders and analysts are now turning to the charts to look for support levels which will represent brand-new buying zones. Trader Josh Rager observed the fall in Bitcoin's supremacy as altcoins surged yesterday;
“$BTC Dominance move down to 52% or below would continue to be extremely bullish for altcoins in the coming weeks,”
At the moment of writing BTC prominence was at 56.3 percent, it had peaked out at nearly 60 percent earlier this week, which is a seventeen month high. Rager added that the CME futures gap had now been filled and Bitcoin had reached its support level at the bottom of it;
$BTC – CME Futures Gap officially filled
Looks like that was the dip to buy
This is very bullish pic.twitter.com/hYCRMKUj2i
— Josh Rager (@Josh_Rager) May 17, 2019
Even more substantial support levels for Bitcoin remain around $6,400 so this would be seen as a brand new entry point for many traders. Civic CEO Vinny Lingham noted;
“We’re in a Bitcoin recovery phase right now, since the $3100 bottom. Dips should be seen as good buying opportunities, unless we drop below the $6200 support level. Watch out for network congestion and fees hurting this run in the mid term if it moves up too quickly to test $20k.”
We're in a Bitcoin recovery phase right now, since the $3100 bottom. Dips should be seen as good buying opportunities, unless we drop below the $6200 support level. Watch out for network congestion and fees hurting this run in the mid term if it moves up too quickly to test $20k.
— Vinny Lingham (@VinnyLingham) May 17, 2019
Many feel that this dump is bullish and will bring about additional gains if the uptrend stays intact. BlockTower Capital CIO Ari Paul noted “I'm not sure this dip is bullish, but one interesting datapoint: I was in a room with 30 crypto people and no one batted an eye. Strong underlying confidence.”
As usual the altcoins are getting hit harder. At the time of writing most of them were dumping double digits with XRP, Stellar and Cardano dumping 14 percent. Bitcoin Cash, Litecoin and Binance Coin had all lost over 10 percent on the day as the correction continues on red Friday.
Image from Shutterstock
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