Crypto Market Cap Falls Below $1 Trillion As Bitcoin Bulls Battle Bears For Control Of $21,000
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(Kitco News) – The cryptocurrency market got its week off to a flying start as prices fell in early trading on Monday, resulting in the total market capitalization briefly dipping below $1 trillion.
Bitcoin (BTC) bears managed to overwhelm bullish support at $21,000 during early morning selling, which dropped the top cryptocurrency to a daily low of $20,898 before reinforcements arrived to bid back above $21,200.
BTC/USD 4-hour chart. Source: TradingView
Following the recovery, BTC is now trading flat on the day as noted by Jim Wyckoff, senior market analyst at Kito, who stated “Bitcoin-US dollar prices nearly flat in early US trading Monday” in his morning brief.
According to Wyckoff, “Bears have the technical advantage in the short term as a two-month-old price uptrend on the daily bar chart has been negated. Bulls this week are working to stabilize the market after the latest selling pressure.”
200 week moving average
All eyes are now on Bitcoin’s 200-week moving average (MA), a key level that has historically provided insight into where the bear market will bottom out.
Monday’s drop took BTC 8% below the 200-MA according to market analyst Rekt Capital, which posted following chart noting that “Historically, $BTC tends to decline -14% to -28% below the 200-MA.”
BTC/USD 1-week chart. Source: Twitter
For those worried that this suggests further downside is ahead, Rekt Capital helped ease those concerns by pointing out that “BTC already fell -21% below its 200-week MA in mid-June, which was very in line with historical figures.”
For now, all eyes are on the US dollar, which is again rising higher and putting pressure on risk assets, as highlighted in the following tweet from independent market analyst Michaël van de Poppe.
All eyes are on USD USD to break below 108 points again, as we have a false out.
Otherwise, the trend will contain and the risk will have more pain. pic.twitter.com/l8FS7VuKQC
— Michaël van de Poppe (@CryptoMichNL) 22 August 2022
Armor sale
Overall, the crypto market experienced a panacea on Monday, with relatively few tokens spared from the decline as even stablecoins traded slightly in the red.
Daily performance in the cryptocurrency market. Source: Coin360
The few bright spots that do exist include XYO, which posted a 19.94% gain in the face of widespread weakness, while Energy Web Token (EWT) gained 12.24% and EOS (EOS) gained 9.93%.
The total cryptocurrency market cap is now $1.01 trillion, and Bitcoin’s dominance rate is 40.4%.
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