Bitcoin’s price swung back below $8,000 Tuesday for the second time in as many days, though its share of the total cryptocurrency market rose to new yearly highs as altcoins and tokens shed a combined $10 billion in value.
After consolidating for much of the weekend, the bitcoin price has swung sharply lower in each of the last two sessions. On Tuesday, prices fell 4% to a low near $7,777, according to Bitfinex. Prices were last seen hovering near $7,836.
The latest decline is the third of its kind going back to Friday, when prices first dipped below $8,000. In each of the previous drops, bitcoin quickly regained its footing above $8,000. The perpetual tug-of-war between the bulls and the bears could be a sign that short-term upside is fading.
As Hacked previously reported, the bitcoin price was eyeing the 200-day moving average as the next major resistance test. With the latest reversal, bitcoin is now eyeing support at the 100-day moving average, which is currently situated below $7,600.
That said, overall trade volumes are in a desirable range for a rally to emerge in relatively short order. More than $5.2 billion in BTC trades were carried out on Tuesday, according to CoinMarketCap. That’s much higher than the $4 billion minimum that is generally associated with rebounding prices.
Cryptocurrency Market Under Pressure
In terms of market capitalization, cryptocurrencies as a whole are trading at their lowest levels in 10 days. Their combined market value currently sits at $279 billion, having declined $14 billion from Monday levels.
Among the top 100 coins, only two were trading in positive territory. Among the majors, the EOS price emerged as the biggest loser, falling more than 10% to $7.30. Stellar XLM, which is currently ranked sixth by market cap, fell 8.5% to $0.272. Cardano’s ADA coin was down 9.7% at $0.142.
Ethereum, Ripple XRP and bitcoin cash – ranked nos. 2-4 by market cap, respectively – fell between 3.6% and 5.5%.
Bitcoin’s share of the total cryptocurrency market remains at its highest level in over seven months. On Tuesday, the so-called bitcoin dominance index reached 48.2%, according to CoinMarketCap. This suggests more crypto traders are rotating from altcoins and into bitcoin due to its perceived stability relative to its peers.
Although the timing has been slightly off, Hacked predicted last week that bitcoin would face a fresh ‘sell’ wave leading up to the expiration of the July futures contract. The latest contract expired on Friday with settlement expected for Wednesday.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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