Cryptocurrency market continued to plunge this morning. Bitcoin has fallen past important support levels, but its market dominance is bouncing back as altcoins experience a serious decline.
More than $ 16 billion has evaporated from the market in the past 24 hours. Altcoins are being hit hard, which will help increase Bitcoin's market dominance.
Important support Bitcoin
Bitcoin fell below the critical support of $ 9,300 last night. At the time of writing, the BTC price is trading around the $ 8,800 range, down more than 4% in 24 hours.
Source: Trading View
Bitcoin is currently trading below the 50-day moving average as the downtrend accelerates. The biggest red weekly candle since mid-November is currently forming as Bitcoin is struggling to hold this support.
If it fails to maintain this level, it is expected to fall to $ 8,000. A pullback has been expected, but Bitcoin's return to the $ 8,000 range will wipe out nearly all of the profits made so far this year.
The only positive that emerged from the struggle this week was an increase in Bitcoin dominance, which has increased from 62% in mid-February to about 64% today.
Analysts have considered the importance of these figures and called it a bullish test. Analyst DonAlt tweeted that:
“I personally think that it doesn't really fit but if it does, is this a price test?”
I see the BTC.D chart thrown around quite often.
I personally think dressed not really relevant but if it is, isn't this just a bullish retest? pic.twitter.com/PMPaI16Fjn
– DonAlt (@CryptoDonAlt) February 25, 2020
Bitcoin dominance reached 70% in December but the price then returned to $ 7,250. However, the total market capitalization at that time was just under 200 billion dollars, so nothing really optimistic about this ratio.
Impact on Altcoin
Bitcoin's decline this week has had a huge impact on some altcoins, many of which have lost more than 10% today.
The price of Ethereum has dropped nearly 5% on the day to $ 226 and it is likely to fall further as the support level is located at around $ 203.
XRP is even more painful and has now returned to $ 0.236 and wiped out all recent gains. All altcoins on the market in the top 20 witnessed red, except for XTZ (+ 5.9%), LINK (+ 7.4%) and LEO (+ 5.6%).
Bitcoin Magazine | Beincrypto
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