Crypto Market Loses $84 Billion as Bitcoin Slips Under $19,000

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  • The crypto market lost $84 billion in one day on the strength of the dollar
  • Bitcoin slipped under $19,00 0 and Ethereum looks set to retest the 2018 high
  • A ruthless U.S. Dollar Index is the most likely reason for the drop

The crypto market has actually shed $84 billion in the last 24 hours as a strong dollar sent out Bitcoin back towards its June lows. Even the ‘combine’ story wasn’t enough to conserve Ethereum which lost $190 to strike $1,500, while the U.S. Dollar Index got a crucial resistance location, leaving it complimentary to continue back to its post Dot-com crash highs.

Market Cap Slips Under Support Area

The crypto market cap sought to have actually turned a previous location of resistance into assistance, however last night’s cost drop sent it pull back once again and through this zone:

total (1)

This leaves us in a comparable scenario to June and July, with the possible to go lower prior to a bounce … or even worse:

total 2

To have any hope of a quick healing, the marketplace cap requires to return above the location it has actually simply failed.

Bitcoin on a Knife Edge

Bitcoin itself stays on something of a knife edge, resting on the assistance used by the 2017/18 high:

btc 1

Despite the combine story, Ethereum looks poised to sign up with Bitcoin back at its previous highs:

eth 1

The factor for this is basic– the strength of the dollar. Crypto Twitter has actually been requiring the top of the U.S. Dollar Index for some days now, overlooking the reality that the basic financial environment hasn’t altered. The flight to the dollar that we typically see in times of financial chaos is playing out once again, with the DXY getting resistance after resistance on its ruthless march upwards.

The DXY has actually been on the warpath given that early 2021, and the other day saw the last location of resistance gotten prior to the 2002 top:


It appears like absolutely nothing is going to stop the U.S. Dollar Index today, and it makes good sense for those who aren’t currently in positions to stay on the sidelines in a dollar-denominated stablecoin and wait on it to strike 119-120 If it does, then it will probably peak there, in which case crypto will take pleasure in a good rebound. If it does not stop there, then you simply keep holding up until it does.

By that point, crypto costs might be very appealing.

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