After a few weeks of thin trading ranges and low volumes, the cryptocurrency market burst into life Tuesday as the market sold-off sharply, with double-digit losses seen across the market. BTC price declined nearly 20% over a day to hitting the lowest of $7,700 and now stays around $8,200.
The sharp sell-off in the Bitcoin price could be a start of something major and investors should keep an eye on the 200-day moving average which is trading at $6,990. Bitcoin needs to break back above the descending slope, currently around $10,200 to regain any bullish momentum. The CCI indicator does suggest that BTC is heavily oversold and this may stem further losses in the short-term.
Since Bitcoin is priced in dollars it is entirely plausible that there could be a correlation with demand during a “dollar shortage” If one is sold to get more of the other this could be what just happened to BTC as its market capitalization has just shrunk by $30 billion.
Things have been bad enough for Bitcoin, but the altcoins have fared enough worse. Of course, it should be noted that cryptocurrencies other than Bitcoin tend to fall further when the Bitcoin price goes down and spike higher during bull markets.