Bitcoin rate below 7,000 US dollars: Strong dump in the crypto market

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Bitcoin has been affected by a significant dump since 5 September at around 12 noon European time, and the same applies to most Altcoins. With double-digit losses the Bitcoin falls again under the mark of 7,000 US dollars. Thus, however, the cryptoprimus is still doing comparatively well.

Then one had prepared oneself for another quiet to boring afternoon, which continues the sideways movement of the last days, and then this: Punctually to the lunch break the crypto currencies start to a collective nosedive flight. With a few outliers the charts of the Top 100 turn red by the dozen, the loss is almost always in the double-digit percentage range.

With a loss of just four percentage points, the industry leader Bitcoin can still consider itself comparatively fortunate. However, this drop is sufficient to push it back below the 7,000 US dollar mark, which has become the reference value for the Bitcoin share price in recent weeks.

Not only the news spy is doing badly

The prices of the other listed crypto currencies develop in the same period as expected depending on the news spy. Thus, the top 10 crypto currencies Ethereum, XRP, Bitcoin Cash, EOS, Cardano and Monero are suffering double-digit losses like this: Meanwhile, the total market capitalization of the cryptographic market has fallen to 220 billion US dollars.

One of the few not affected by the dump is currently Bitcoin Diamond. Here, the current exchange rate is 2.95 US dollars. Thus Bitcoin Diamond has gained 127 percent in the last 24 hours. Also in the course of the week the coin registers a plus of 107 per cent, in the course of the month this is 80 per cent plus.

The chart technical perspective to the dump

From a chart technical point of view the MA20 is in the way again. The Bitcoin price could rise up to the resistance indicated on 3 September, but bounced off the moving average of the last 20 weeks:

What does that mean now? If the exchange rate continues to develop in this way, it could well fall below the 6,000 US dollar mark again. However, a closer look at the daily chart shows that there is still reason to hope for a positive reversal:

You can see that the price is currently testing the EMA50. Even if it falls below this level, it is still possible to undercut the downward trend pursued since January. Currently, the MACD line (blue) is falling, but is still above the signal (orange) and is positive. The dump consequently led to a fall of the RSI to just above 50. So there is still room for a bullish development from the Bitcoin price. It is important to observe whether the price can hold above the support described by the downward trend, which currently stands at around 6,600 US dollars. If it falls below this level, the upward trend started at the end of August is broken and one can expect further price losses.