After a week of optimistic trading in which Bitcoin (BTC) seemed to have been about to break through the $4,000 resistance level and perhaps challenge the long-term resistance at $4,200, the bears have come roaring back, and Bitcoin (BTC) has receded from $4,000.
Bitcoin (BTC) dropped as low as $3,850 today and has since recovered to about $3,890. This is the first time Bitcoin (BTC) has dropped below $3,900 since March 15.
Before today, the support level was $3,900, but this support clearly has broken. During the month of March, $3,700 has been a key support level, and it is critical that this level holds or a crash back to the long term support level and bear market low of $3,100 would be possible.
It is unclear if $3,900 has once again become a resistance level as it was before March 15. The resistance levels at $4,000 and $4,200 continue to be in place.
The crypto market reacted negatively to Bitcoin’s (BTC) drop today. All major cryptocurrencies are in the red except EOS, which has managed to gain 0.1 percent despite the bear sentiment.
Ethereum (ETH) is down 2.1 percent, Ripple (XRP) is down 2 percent, Litecoin (LTC) is down 1.2 percent, Bitcoin Cash (BCH) is down 3.6 percent, Binance Coin (BNB) is down 4.3 percent putting an end to its rally over the weekend, Stellar (XLM) is down 3.8 percent, Tron (TRX) is down 3.4 percent, Cardano (ADA) is down 4.5 percent giving back a lot of its gains from Friday, Bitcoin SV (BSV) is down 2.6 percent, Monero (XMR) is down 3 percent, IOTA (MIOTA) is down 4.3 percent, Dash (DASH) is down 3.9 percent, and Dogecoin (DOGE) is down 0.3 percent.
The total crypto market cap has shed $3 billion today amid the bearish trading activity, dropping from $140 billion to $137 billion. Since Bitcoin’s (BTC) failed attempt at breaking through $4,000 on Thursday, the total crypto market cap has fallen $5 billion.
Today is a reminder — and a caution — that we can’t prematurely declare that the bear market is over. That being said, the total crypto market cap is well above the bear market low of $100 billion, and it is possible that the strong support at that level is the bottom. However, this bottom cannot be confirmed or that the bear market is over until the crypto market experiences months of consistent and significant gains.