• Bitcoin fell by $1,500 and tested $10,000 level
• Ethereum below major support level
The cryptocurrency market followed the sharp declines that occurred on Wall Street yesterday. The Standard & Poor’s 500 Index of large U.S. stocks retreated Thursday after climbing to a new record high earlier in the week while major cryptos tested key supports levels. Today major coins are attempting to erase some of their yesterday loses. Bitcoin's market dominance decreased to 56.5%. The capitalization of all digital assets in circulation dropped to 342 billion, while an average daily trading volume is registered at $99 billion.
Bitcoin price chart compared to Ether and the S&P 500. Source: TradingViewAfter Bitcoin had traded at approximately $11,500 yesterday, a massive sell-off happened in the hours that followed, which pushed the price below $10,000 for a short time. Since then, the Bitcoin price has recovered somewhat and stands at $10 400.
As has been seen on several occasions in the past, the correlation with equity and the precious metals markets has been a strong stimulus for Bitcoin price movements. In recent months, bitcoin price movements have been also strongly influenced by the US dollar. The dollar, which is currently recovering, may also have contributed to the declines in the cryptocurrency market.
Bitcoin – sellers failed to uphold momentum and price bounced off the key $10 000 support level. Should upbeat moods prevail, resistance at $11 000may come into play. However is selling pressure intensifies and sellers manage to break above the aforementioned support, an downward impulse towards $8868 could be launched. Source: xStation5After sharp increases which took place in July and August, activity in the decentralized finance (DeFi) space much of which takes place on Ethereum, the second-largest blockchain declined recently. Prices for ether, the native currency of the Ethereum blockchain, dropped 8.3% on Thursday after a 7.6% drop the prior day.
Ethereum's price managed to bounce off the $366.00 support level which is additionally strengthened by 50 MA (green line) and is currently approaching key resistance level at $400.00. In case sellers manage to halt advance there, another downward impulse could be launched. On the other hand, breaking above it may trigger a bigger upward move. Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
