Crypto newsletter: Bitcoin price briefly dropped below $10,000

2:14 pm 4 September 2020

• Cryptocurrencies follow Wall Street lower
• Bitcoin fell by $1,500 and tested $10,000 level
• Ethereum below major support level

The cryptocurrency market followed the sharp declines that occurred on Wall Street yesterday. The Standard & Poor’s 500 Index of large U.S. stocks retreated Thursday after climbing to a new record high earlier in the week while major cryptos tested key supports levels. Today major coins are attempting to erase some of their yesterday loses. Bitcoin's market dominance decreased to 56.5%. The capitalization of all digital assets in circulation dropped to 342 billion, while an average daily trading volume is registered at $99 billion.
Bitcoin price chart compared to Ether and the S&P 500. Source: TradingView
 
Bitcoin fell in correlation with traditional markets
After Bitcoin had traded at approximately $11,500 yesterday, a massive sell-off happened in the hours that followed, which pushed the price below $10,000 for a short time. Since then, the Bitcoin price has recovered somewhat and stands at $10 400.
As has been seen on several occasions in the past, the correlation with equity and the precious metals markets has been a strong stimulus for Bitcoin price movements. In recent months, bitcoin price movements have been also strongly influenced by the US dollar. The dollar, which is currently recovering, may also have contributed to the declines in the cryptocurrency market.
Bitcoin – sellers failed to uphold momentum and price bounced off the key $10 000 support level. Should upbeat moods prevail, resistance at $11 000may come into play. However is selling pressure intensifies and sellers manage to break above the aforementioned support, an downward impulse towards $8868 could be launched. Source: xStation5
 
Lower DeFi activity hit Ethereum prices
After sharp increases which took place in July and August, activity in the decentralized finance (DeFi) space much of which takes place on Ethereum, the second-largest blockchain declined recently. Prices for ether, the native currency of the Ethereum blockchain, dropped 8.3% on Thursday after a 7.6% drop the prior day.
Ethereum's price managed to bounce off the $366.00 support level which is additionally strengthened by 50 MA (green line) and is currently approaching key resistance level at $400.00. In case sellers manage to halt advance there, another downward impulse could be launched. On the other hand, breaking above it may trigger a bigger upward move. Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.