Bitcoin back on the $10,000 level. Is it already time to buy back?
Julien Moretto – 9 Sep 2020
Last week’s flash crash finally triggered a sharp correction in the cryptocurrency market. Bitcoin gave up nearly 15% over one week to come back around €8650 ($10,100) on September 9. Ethereum suffered more from the decline due to recent excesses around decentralized finance (DeFi) and lost 28% in seven days. A decline which must however be put into perspective by taking into account the increase of the last few weeks.
Two main reasons seem to explain this sudden turnaround. The first comes from the DeFi, which had entered a sort of “bubble” with the multiplication of clone or eccentric, overvalued projects. A number of big wallets had to take big profits on these projects after letting the euphoria take hold. The second explanation comes from traditional markets. The revelations about the SoftBank fund that has taken important positions on the Nasdaq index through options have been badly received, suggesting that the recent rise in US tech stocks was partly artificial. A “contagion effect” of the correction has spread to all markets, including the cryptocurrencies market.
From a technical point of view, Bitcoin is back in a buy zone, but the selling pressure remains strong. The $10,000 support could give way and bring the price down another 8 to 10%. In the mid term, the uptrend of the last few months is not yet questioned. We are observing the key levels to give you the best possible entry points.
- According to CoinGecko, market capitalization drops sharply to $330 billion from $380 billion last week.
- Bitcoin’s dominance increased slightly to 56.6% from 54.5% at the beginning of the month.
- The best performance of the top 50 is to be attributed to TRON (TRX) with +1.9% over one week.
We invite you to discover our analysis in video (in french and dated September 8) :
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