In the past few weeks, there were fears of Bitcoin price dropping to under $9K. Well, that is the situation now, from a few hours ago. The price of bitcoin dropped by 3.85% to $8,835.
The price drop got the market by surprise as the price has exceeded the $9,150 to $9,188, and there were expectations that the price was on an upward trend.
Traders had expected a rejection level of $9,300 after it passed the rejection level of $9150. As of now, the Bollinger Band indicator is at $8,858.
It is either the support level at $8900 is reclaimed or the price will achieve a 200-day moving average at $8695 or even $8400.
There is a possibility that the market will get bearish that would mean that if Bitcoin does not get to the rejection level of $9,150, it will go through the 21-week moving average to $8,676.
From a macro perspective, the market structure of Bitcoin is on track. According to economists, the big gains in the first few weeks of the year and the retracement it is undergoing at the moment are needed for a healthy state of the market.
Since the price is currently at $8,835, a support level of $8900 in the short-term makes more sense. It is highly unlikely that the support price will drop to $8,400 especially at the zone of 200-DMA. Many traders are, however, expecting a weekly close at below 21-WMA ($8676).
With the current market trends, Bitcoin is very likely to get a lower low that will make the price drop below the $8400 support level which will lead to more consolidation.
Since Bitcoin is like the prime cryptocurrency, it influences altcoins. Its drop in price has also led to a consequent drop in the price of altcoins. The first top 20 altcoins dropped by at least 3-5%. Litecoin dropped by 2.67%, Bitcoin Cash by 4.16%, Binance by 5.03%, and Tron by 5.78%. The dominance rate of Bitcoin is currently at 63.3%, so Bitcoin has a big influence in the cryptocurrency market.
The market cap of the general cryptocurrency is at $256.6 billion.
The drop in the price of Bitcoin will also lead to more liquidations that may be worth $11 million. For most crypto enthusiasts, they are hopeful that the whole scene will change once issues such as Coronavirus subside.