The cryptocurrency market has had it tough over the past days, with market leaders like Bitcoin and Ethereum posting near-20% losses over the past 7 days.
Bitcoin Breaks Through Support at $6,800, Hits Low of $6,175
“Stormy” could be a word used to describe the state of the market, but to some this description of the market may be a smidge too kind.
Bitcoin fell to nearly $600 from $7,100 just yesterday as the SEC announced that it would be delaying its verdict on the VanEck-backed ETF. While it broke the vital $6,800 support, which many technicians see as a key level which Bitcoin should hold, it looked like it found someplace to stand in the ~$6,500 range.
However, as the market moved into Wednesday morning, Bitcoin tumbled further, catching many investors with their pants down at the ~$6,175 level.
While the aforementioned decline from $7,100 to $6,500 made sense, many were caught off guard with this drop, with it being unclear whether there was a catalyst for this most recent $300 candle to the downside.
While Bitcoin may not run into any support in the low-mid $6,000 range, it is important to note that Bitcoin’s break of the $6,800 level could pose an issue. Prior to Bitcoin’s most recent recovery, where the price of the asset rose from $5,800 to a high of $8,450, Bitcoin struggled to surpass $6,800 on multiple occasions, which outlined it as a level of heavy resistance (and support subsequently).
As reported by Ethereum World News previously, Bart Smith, the head of digital assets at Susquehanna, has continually highlighted the $6,800 as a ‘make or break’ level. Speaking with CNBC Fast Money panelists, Smith stated that Bitcoin needs to establish higher lows (and higher highs), while also holding above $6,800 to make a move higher in the future.
For now, a bounce may not be in store for the price of the so-called “digital gold.”
Market Establishes YTD Low
Altcoins followed Bitcoin downwards, with a majority of altcoins actually underperforming the foremost crypto asset. In fact, Bitcoin dominance has risen to a tad over 49% at the time of writing.
Despite the fact that Bitcoin hasn’t hit a year-to-date low, the collective value of the cryptocurrency market has hit a YTD low at a dismal $220 billion. While the fundamentals may be open to question, one thing remains certain, this being that volume is returning with this move downwards.
Publicly-available exchange volume is currently shown as $16 billion in the past 24 hours, which is up by nearly 50% than the figures shown approximately 48 hours ago.
Nonetheless, some investors remain hopeful, even though the market has established bearish figures. Take a look at the following tweet from Bobby Lee, the co-founder of the BTCC exchange and a brother to Litecoin’s founder, who noted that a crypto bottom may not be in, but he remains bullish on the industry.
— Bobby Lee (@bobbyclee) August 8, 2018
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