Bitcoin has started the day posting losses. At press time, the largest cryptocurrency by market cap is trading at $42,884.54 (-4.23%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ether has fallen to $3,039.35 (-2.76%), while Tether has dropped by 0.01% and is now trading at $1.
FxPro's team of analysts say:
"Bitcoin is trading at around $42,900 after managing to recover part of yesterday's decline. During Monday's trading, the crypto has lost around 10%. Early this morning, a flood of stop orders has driven the price of the asset close to the early August lows at $40,200. The volume of liquidated positions has risen to $1.27 billion.
Most likely, this decline becomes only a part of the correction suffered since September 8. It seems to be developing in line with the '54% drop' scenario suffered between April 14 and May 19. However, this time events are unfolding much faster and will continue to increase the pace if the crypto price does not stabilize at around $45,000 over the next 1-3 days. In this case, the cryptocurrency could fall as much as 30%.
The S&P 500 has lost 1.66%. This could be a good test for Bitcoin and test its correlation with the leading US index to determine its strength. This is not to say that the situation is now completely out of the control of the bulls. The losses of the major cryptos mostly do not exceed 10%, and buyers have clearly appeared in the markets. It is difficult to find out how strong the support will be at the current levels.
According to technical analysis, the BTC price has re-tested the 200-day moving average. The third wave of correction is now emerging along the Elliott waves.
The greed and fear index is traditionally late and shows neutral sentiment, although the market capitalization of cryptocurrencies has declined by $140 billion over the past day. The altcoins have reacted to the situation with the usual 5-15% decline. However, so far these are not bloody rivers, which will no doubt eventually flow if Bitcoin accelerates its decline."
According to CoinMarketCap’s ranking, 7 currencies on the top 10 are in red.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $1,908,395,868,394.
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