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Bitcoin (BTC) Loses $50 Billion in a Week: Chart Breakdown

Bitcoin (BTC) Loses $50 Billion in a Week: Chart Breakdown

2018-03-09 10:04:00
Nick Cawley, Strategist
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Bitcoin News and Talking Points

- Bitcoin market capitalization slashed by $50 billion in a week.

- Cryptocurrency market a sea of heavy losses.

To see how traders are currently positioned in cryptocurrencies and what it means for the market looking ahead, check out the IG Client Sentimentpage.

We will be discussing a wide range of topics covering blockchain and cryptocurrencies with Former Ethereum CCO Stephan Tual at a Special Live Discussion on March 13 at 14:00 GMT.

Bitcoin (BTC) Market Capitalization Slashed by $50 Billion This Week

The cryptocurrency market heavyweight Bitcoin (BTC) has suffered heavy losses this week with the price on the coin falling by around $3,000 this week – a near 25% drop - knocking $50 billion off its overall market capitalization. Falls of 20% in most asset classes traditionally spark multiple ‘Bear Market Territory’ headlines although due to the volatile nature of BTC, weekly moves of 20% in either way are commonplace.

The worry in the market is that while there has been a regular drip of negative news, there has been no stand-out event that should have prompted support levels to crumble. A look at the chart below shows both Zone 1 and Zone 2 support has been taken out while BTC has now re-entered the downtrend started on December 17, 2017. The next level of support is $8,523 the 78.6% Fibonacci retracement of the November 11 – December 17 rally, while the February 6 low of $6,000 may provide support lower down. Worryingly the last five candles on the chart show lower highs and lower lows, a negative technical set-up.

We highlighted the weak technical set-up of various cryptocurrencies at this Wednesday’s Weekly Cryptocurrency Webinar.

Bitcoin (BTC) Price Chart in US Dollars(October 17, 2017– March 9, 2018)

Bitcoin (BTC) Loses $50 Billion in a Week: Chart Breakdown

Top 10 Cryptocurrencies by Market Capitalization in US Dollars – March 9, 2018

Bitcoin (BTC) Loses $50 Billion in a Week: Chart Breakdown

Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars

If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Practice Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.

What is your take on Bitcoin after the latest heavy shake-out? You can leave your views in the section at the bottom of this report or you contact the author by email at nicholas.cawley@ig.com or via Twitter a@nickcawley1.

--- Written by Nick Cawley, Analyst.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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