Bitcoin is down 9% today
It’s a rough day in cryptocurrencies with Bitcoin down 9% to $6278 after hitting a low of $6148.
It doesn’t take a chart wizard to highlight the importance of the area of support around $6000. That level has held since February with the exception of a one-off drop to $5791 on June 29 that was quickly erased leading to a rally to $8500.
The trigger for the latest wave of selling was a delay on the SEC decision on whether to allow a Bitcoin ETF. When that decision is eventually made, expect a big move in Bitcoin.
Aside from the drop in BTC, the more notable moves might be in other cryptocurrencies in the past 24 hours:
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Ripple -19.7%
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Litecoin -16.4%
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Ethereum -12.5%
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Bitcoin Cash -17.9%
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IOTA -22.3%
That looks a lot like panic and what’s most troubling is that everything on that list is at the lows of the year. The market cap of Bitcoin is at the lowest since November.
Unless Bitcoin can somehow buck the trend, it’s going to be tough to hold $6000. One ray of light might be sellers of alt coins retreating to Bitcoin as a more ‘stable’ coin, but given its drop today, fiat is a much more likely haven.
So what next?
There is some minor cascading support all the way down to $2934, which was the September low of last year. The first major line is $5605. which was the Nov 2017 low and since it coincides with the June drop, that’s going to be a critical level.
The real problem right now is that the more-skeptical public wants to see some real-life uses and it’s taking longer than hoped. Until the hype is replaced by delivery, I think the crypto market will struggle.