Down two-thirds from its December all-time high of $20,000, bitcoin (BTC) now risks printing fresh 2018 lows below $5,755. The corrective rally seen over the weekend failed to penetrate the key rising trendline hurdle of $6,480 on Monday, allowing the bears to make a strong comeback.
As a result, the leading cryptocurrency fell below $6,000 (February low) and extended the slide to $5,859 earlier today – the lowest level since June 29 – according to Bitfinex data. As of writing, BTC is changing hands at $6,032 – down 6 percent in the last 24 hours. Despite sharp losses, bitcoin is the fourth best-performing cryptocurrency among the top 100 cryptocurrencies by market capitalization, according to CoinMarketCap.
Other cryptocurrencies are reporting bigger losses. For instance, 92 out of the top 100 cryptocurrencies have suffered double-digit losses on a 24-hour basis.
Further, the bitcoin dominance rate, a measure of BTC’s market share, jumped to an eight-month high of 53.7 percent today. Hence, it seems safe to say that the cryptocurrency markets have turned risk-averse, that is, investors are venturing out of the high-risk alternative cryptocurrencies and into well-established cryptocurrencies like BTC, and then possibly on to fiat currency.
Looking ahead, the downtrend in bitcoin prices could continue as the technical chart analysis is calling a deeper sell-off – although support at $5,650 could hold for now. The bears are likely to be feeling emboldened following the bull failure at the descending trendline hurdle despite the bullish divergence of the relative strength index (RSI) seen in the chart above. Read more from coindesk.com…
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