- Cryptocurrency market value dropped back below $200B.
- Bitcoin is moving fast towards a critical support area.
- Ethereum is the worst performing coin out of top-10.
Most major coins failed to pass through critical resistance levels amid lack of upside momentum and finished Monday in the red zone. The total cryptocurrency market dropped below $200B handle for the second time in September, weighing on speculative sentiments.
Bitcoin, the digital currency number 1 has lost nearly 4% on a daily basis to trade at $6,242 by the time of writing. BTC/USD turned to the North after several futile attempts to break $6,530 resistance.
Ethereum, the second largest coin by market value, crashed once again, losing over 11% on a daily basis. ETH/USD dropped below $200 handle to trade at $196.78 by press time.
Ripple’s cryptocurrency XRP is changing hands at $0.2850, down 3.5% since this time on Monday. The coin is relatively stable as compared to other major altcoins, that lost from 6% to 11% on a daily basis.
Cryptocurrency experts note the continued growth of bitcoin dominance (currently 56.4%) and subdued trading volumes for altcoins amid a crypto variation of risk aversion, where traders flock to top few coins that are considered to be the safest bet.
According to Rob Sluymer, technical strategist at Fundstrat Global Advisors, Bitcoin has returned to critical support level created by $6,100-$6,200. Once it is cleared, the decline may be extended.
“Last week’s decline leaves BTC in a fragile technical position as it attempts to stabilize/base at $6,100-$6,200 support. A break below $6,100 would signal a retest and possible break of $5,800 support with potential risk to $5,000,” he wrote.
BTC/USD, 1-hour chart
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