Bitcoin Breaks Support, Cryptocurrency Market Trends Lower
The cryptocurrency market started the week off on a negative note as prices trended lower on Monday. Bitcoin, the leading cryptocurrency, broke below support at $25,000 for the first time since June 15. This decline comes amid historic lows in volatility, liquidity, trading volumes, and on-chain settlement volumes.
Stocks Climbing Higher as Yellen Optimistic about the Economy
While the cryptocurrency market experienced a downturn, stocks climbed higher following comments from Treasury Secretary Janet Yellen. Yellen expressed confidence in the US economy’s ability to avoid a recession and curb increases in the consumer price index (CPI). She stated, ‘I think you’d have to say we’re on a path that looks exactly like that.’
At the market close on Monday, the S&P, Dow, and Nasdaq all finished in the green, up 0.67%, 0.25%, and 1.14%, respectively.
Bitcoin Price Decline and Technical Analysis
Data provided by TradingView shows that Bitcoin lost support at $25,800 in the morning session and continued to slide lower throughout the trading day. The price bottomed out near $24,900 in the late afternoon, with bears pushing for further declines.
Kitco senior technical analyst Jim Wyckoff noted, ‘September Bitcoin futures prices [were] again down in early U. S. trading Monday.’ Wyckoff added, ‘The bears have the overall near-term technical advantage as a price downtrend line remains in place on the daily chart.’
Market Sentiment and Analysts’ Perspectives
MN Trading analyst Gunter Lackmann highlighted the recent minor uptick in BTC price and noted the importance of the support level. He stated, ‘Feels like bulls are getting conditioned to believe that ‘all breakout attempts fail anyways’ and the bears are waiting for $12k.’
Cubics Analytics founder Caleb Franzen emphasized the significance of BTC holding onto support in the $23,800 – $25,300 range.
Altcoin Market Responses and Market Cap Overview
The falling price of Bitcoin led to an exodus of traders from the altcoin market. Almost all tokens in the top 200 recorded losses on Monday. Trust Wallet Token (TWT) was the only coin with notable gains, increasing by 5%.
The overall cryptocurrency market cap currently stands at $1 trillion, with Bitcoin’s dominance rate at 48.7%.
