Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions.
Bitcoin (BTC) made a significant plunge on Tuesday evening, reaching around $18,600 yesterday morning. Yesterday afternoon, bitcoin started to recover and rose to a peak near $19,500 by last night. However, the price was immediately rejected, but bitcoin held above $19,200 overnight. The BTC price at the time of writing stands at $19,330 on FTX and $19,300 on Bitvavo.
The euro and dollar are now worth about the same again. The US dollar index (DXY) has fallen slightly again and the BTC rate is up 3% today. Bitcoin trading volume fell by 21.5% in the past 24 hours. Total market cap currently stands at $370 billion and bitcoin dominance at 37.8%.
Bitcoin Fear and Greed Index is 20 – Extreme Fear
Current price: $19,288 pic.twitter.com/sUQcQkZD9U— Bitcoin Fear and Greed Index (@BitcoinFear) September 8, 2022
Bitcoin news from yesterday
Bitcoin price tests $19,500
With the recent decline, the bitcoin price broke out at the bottom of a triangular pattern. The bottom of this was around $19,500 and that may mean support has turned into resistance here. Bitcoin was already rejected here last night. Still, several analysts expect bitcoin to continue this recovery and break bitcoin past $19,500.
Everyone in #crypto right now watching $19,500 on #Bitcoin pic.twitter.com/xA7ouxHDpf
— Jason Pizzino 🌞 (@jasonpizzino) September 8, 2022
Bitcoin could potentially shoot up to $21,500 or even above $22,000, though that doesn’t mean it’s bottoming out right away. Some analysts also warn of a possible bear trap. A bear trap is a false technical indication of a trend reversal that can lure unsuspecting investors.
Bitcoin Dominance Nears Record Low Level
Bitcoin dominance is the ratio between the market capitalization of bitcoin and that of the rest of the crypto market. Some crypto investors use bitcoin dominance as a guideline to determine their strategy. If the dominance is low, it means that bitcoin underperforms the entire altcoin market. Historically, we have seen bitcoin decline sharply in dominance during a bull market as altcoins rise in value. In a bear market we often see the opposite.
Low bitcoin dominance in a bear market may indicate a good buying opportunity. At the moment, we see Bitcoin approaching record lows. Only in January 2018 did we achieve a comparable level of around 37%. The past has shown that bitcoin does not last long at these levels in a bear market and that bitcoin dominance could be reversed.
Trade with Crypto Insiders on Discord
Are you looking for help with trading? Would you like to gain more knowledge about the market? Then take a look at our Discord group for members. In this environment we want to teach members how to read and make their own analyses. In addition, current topics are discussed every day and we look at the various sectors within the market. In our Discord community we can share knowledge with each other 24/7 and we try to keep our premium members informed. Would you like to read these types of analyzes sooner? Then take a look at the Discord environment. Here you can also get in touch directly with various analysts and crypto enthusiasts who are ready to help you!