By CCN.com: Dominant crypto asset bitcoin sent fresh shivers through the rest of the cryptocurrency market with its latest plunge.
The bitcoin-to-dollar exchange rate dropped as much as 2.66-percent on Monday to establish an intraday low towards $5,569.71. The move brought bitcoin’s total downside correction from its weekly high to 4.58-percent, wiping more than $3.5 billion on the way.
Other assets listed in the cryptocurrency index followed bitcoin’s sentiment. Ethereum, the second-largest crypto by market capitalization, lost a little over a billion dollar as its dollar-rate dropped 6.76 percent. Bitcoin Cash, bitcoin’s forked version and the fourth-largest crypto, too plunged by more than 11-percent. EOS, Litecoin, XRP, Binance Coin and the rest of the top assets also trended in negative territories, as shown in the CoinMarketCap listing below.
Combined, bitcoin and the rest of the cryptocurrency market, which includes more than 2,100 assets, lost up to $8.7 billion from their weekly high.
Imminent Market Sentiment
As predicted in one of our analysis, the bitcoin price is facing a psychological resistance in $5,660-5,787 area, which served as an active support area in June 2018. The latest price action further reveals the presence of an ascending parallel channel. Its upper line lately coincided with the $5,787 resistance level. The said line also served as a crucial resistance on two separate occasions, as indicated by ‘1’ and ‘2’ in the chart above. That, at least, confirmed the role these indicators are playing in the current market scenario.
Moving forward, the bitcoin price could continue its corrective action to find decent support towards the green bar ($5,303-5,408) as shown in the chart above. The bar coincides with…