Bitcoin (BTC) dropped from just over $3,800 yesterday evening to $3,670 early this morning and then stabilized near $3,700. It appears $3,700 is a strong local support level, although it is perhaps being weakened from occasional dips into the buy support throughout today.
It is crucial to watch the $3,700 level since, if Bitcoin (BTC) breaks below it, it may retest the bear market low and long term support level of $3,100. If Bitcoin (BTC) can stay above $3,700, it may have a chance at rallying back to the long term resistance level of $4,200.
The rest of the major cryptocurrencies have followed Bitcoin’s (BTC) lead, with an overnight decline followed by relative stability today. Ethereum (ETH) is down 3.8 percent, Ripple (XRP) is down 2.5 percent, EOS is down 7.9 percent, Litecoin (LTC) is down 4.1 percent, Bitcoin Cash (BCH) is down 5 percent, Binance Coin (BNB) is down 1.7 percent, Stellar (XLM) is down 3.6 percent, Tron (TRX) is down 0.5 percent, Bitcoin SV (BSV) is down 3.4 percent, Cardano (ADA) is down 4.2 percent, Monero (XMR) is down 3.1 percent, IOTA (MIOTA) is down 4.4 percent, Dash (DASH) is down 3.2 percent, and Dogecoin (DOGE) is down 1.4 percent.
Notably, Binance Coin (BNB) has now surpassed Tron (TRX) and Stellar (XLM) on CoinMarketCap and is ranked number 8. This continues a sustained rise in rank of Binance Coin (BNB) due to speculation regarding the Binance DEX, where Binance Coin (BNB) will be the only cryptocurrency that can be used to pay transaction fees. That being said, Binance Coin’s (BNB) lead over Stellar (XLM) is minuscule, and Binance Coin (BNB) could fall back to number 9 any moment.
Also, Ripple (XRP) has actually lost value since being added to Coinbase. This is an underwhelming and perhaps surprising result since major cryptocurrencies that have been added to Coinbase in the past usually rally.
The total crypto market cap slid as low as $125 billion early this morning and has now recovered to $126 billion, which is still a bearish $4 billion loss since yesterday evening. The total crypto market cap is about 25 percent above the bear market low of $100 billion.
So far during this bear market, each rally has ultimately been stomped out, and as long as this negative market sentiment continues, the crypto bear market lows may eventually be retested. Today’s price action shows that the bears are still in control of the crypto market.