Yet again bitcoin price has failed to hold its ground above $10k and the bears have pushed BTC back into four figures this morning. The move has been a slow retreat rather than one big dump but further losses could be on the cards.
Bitcoin Back in Four Figures
BTC could only manage a couple of days above $10k at the end of the week. It has been sliding ever since and broke back below this psychological support barrier during late trading yesterday. Sundays are usually slow for crypto trading but the bitcoin selloff continued.
According to Tradingview.com bitcoin dropped to $9,850 a couple of hours ago, lining up with the weekly support area. It is still within its range-bound channel but could drop even lower to support at $9,600 if the buyers don’t get busy soon.
Charting professional Peter Brandt has called a bearish move based on the descending triangle formation.
“Markets have a tendency to do what the most number of market participants least expect and don’t want to happen. Descending triangles are most often bearish.”
One thing I have learned from 45 years of trading:
Markets have a tendency to do what the most number of market participants least expect and don't want to happen.
Descending triangles are most often bearish. $BTC pic.twitter.com/bKlYPke8AA
— Peter Brandt (@PeterLBrandt) September 21, 2019
BTC as yet has not broken out of this pattern but the repeated dips below $10k indicate that there are no new buyers and the same money is entering and leaving the space.
The chart pattern is very clear and something larger is about to happen when the breakout comes which could be this week.
$BTC is getting tightening up!
A huge move is coming…$BTCUSD #bitcoin pic.twitter.com/WjLnBYgsu8
— CryptoHamster (@CryptoHamsterIO) September 22, 2019
There are still a few that believe Bakkt will be the savior with its launch next week but at the moment that is looking unlikely.
Elsewhere on Crypto Markets
Bitcoin dominance is back at 70% which means the altcoins are also starting to retreat, wiping out last week’s gains.
Ethereum has dropped 3.5% on the day in a fall back to $210. Since last weekend ETH has gained 17% but some of those gains are starting to shrink as it couples up to bitcoin once again. There was renewed hope that Ethereum had started an independent move but with BTC falling back ETH is bound to follow.
The pain is greater for Ripple’s XRP token which has dumped 5% overnight in a fall back below $0.28. The short lived pump is now dumping as XRP slides back towards its yearly lows.
A sea of red has enveloped crypto markets during Asian trading today and there are heavy losses for Stellar, Cardano, IOTA and Cosmos. Around $6 billion has left the space in 24 hours and the pain appears to be increasing today.
Will bitcoin price lead markets lower this weekend? Add your thoughts below.
Images via Shutterstock, BTC/USD charts by TradingView, Twitter: @PeterLBrandt, @CryptoHamsterIO