Yesterday we cannot state sellers dominated the price. It was dominated by buyers, who could buy at the price they decided to buy. The selloff was huge. Bitcoin at some point in the evening lost more than 17% and currently is down -12.8%. The only digital tokens not affected by this selling was the stablecoins. Yesterday the crypto sector lost 30 billion dollars of market capitalisation, so currently, the sector is valued for slightly less than $222 billion (-13.4%).
On the image above we can see the 24H evolution of the cryptocurrencies Market Capitalisation. We can see that most of the drop happened close to the 19 hours GMT in an event that tripled the trading volume. Below, the heat map showing the selloff was huge. Ethereum at some point lost 20%, Bitcoin Cash, Bitcoin SV, and Eos over 20% drop.
What is happening?
According to a Bitcoinist article, the crash of the cryptocurrencies came preceded from a flash crash of the Bitcoin hash rate which dropped the 20% yesterday, although today recovered.
A Coingape article tells that the cryptocurrency crash happened in sync with BitMEX $600 million long liquidations. Other pieces of information suggest that margin calls played an essential role in the crash.
Bitfinex wins critical appeal in New York’s Supreme Court. That means it doesn’t need to produce documents revealing what it did to $900 million Thether. Source: Beincrypto.
The 4H chart of Bitcoin shows that although the price is at the extremes, the price is not doing a healthy bounce, or already did. The price is still creating a bearish candlestick while other cryptos such as Ripple and Ethereum is having over 2% bounce. We can see that a drop below $8,420 will drive the price to test the $8,000 level and, then, the $7,550 area which would erase 100$ of the bullish move that started on June 11.
Ripple created a bounce after the sharp crash yesterday, and now the price moved above the level of the lows made in August ($0.234). The current action is still bearish with resistance at $0.246. A movement below 0.234 will drive the price to a test of yesterdays lows ($0.20)
Ethereum is currently at the supports provided by August lows ($166). The price is bouncing from yesterday’s lows, but their odds for more drop is high. The next levels to visit would $160 and $130.
Litecoin has crossed yesterday the lows made in August and now is touching April’s territory. $53 is its next support. Currently, the price is bouncing at $56, and the resistance above the price is $59. There is no question that the outlook is gloomy. The chart shows in blue the key support levels which correspond with lows made earlier in the year.