A massive move during trading in Asia this morning saw Bitcoin finally pullback from the $8,000 zone and drag the entire crypto market down with it once again.
Dropping over $12 billion, total crypto market capitalization has been crushed by almost 5% as it fell from $250 billion to $238 billion over the past 12 hours. The altcoins are bleeding at the moment shedding gains from a couple of weeks of upwards momentum.
Bitcoin Drops 4%
Bitcoin has played the digital pied piper once again as it failed to break resistance over $8,000 for the third time in less than two weeks. It started to slide from a high of $7,965 a few hours ago, dropping 4.2% to a low of $7,625 according to Coinmarketcap.com. On some exchanges BTC fell as low as $7,500.
The move follows the formation of a double top with the neckline just over $7,000. The first significant level of resistance for Bitcoin is $7,400, a fall through that could see it drop to $6,800 and then things may turn south very quickly. The $6,400 price has been mentioned many times over the past month or so as it was 2018’s most frequently traded price, hence a huge support level.
Trader, Josh Rager, is not worried and maintains that the current formation is neither bullish or bearish.
“$BTC still in this condensing formation and held by horizontal supports. Not a lot has changed which shows that you don’t have to stare at charts all day – waiting for that next massive candle. The Formation is neither bullish nor bearish. It’s there to show price is condensing & a volatile move will likely follow …”