Bitcoin Trading At Critical Level

Bitcoin Trading At Critical Level

With Bitcoin trading below $8,000, the big question is, will this cryptocurrency be able to push above $8,000 or will it continue to experience more downward pressure?

Currently, Bitcoin is trading at around $7,913, 2% lower, which is a critical level. If the price of this cryptocurrency does not bounce back above $8,000, more downside pressure is expected. Interestingly, in terms of its dominance in the market, which refers to how big Bitcoin is relative to the entire crypto market, Bitcoin has now declined to its lowest point since the 3rd of August 2019.

Global investors and traders are likely to now convert their Bitcoins into other digital currencies or to sell their Bitcoins for cash. As a result, the size of the entire cryptocurrency market is declining. With reference to other cryptocurrencies, Ethereum is also trading 2% lower today, while Ripple is up 4%.

If the Bitcoin price does continue to decline, relative to the market, the best trade would be to trade Bitcoin versus other cryptos, such as selling the BTC/XRP (Bitcoin/Ripple) pair.

Currently, on Bakkt, a Bitcoin futures exchange and digital assets platform, the volume of Bitcoin being bought is still very low. To put this into perspective, the average of Bitcoin being traded daily is less than 50 BTC and this could be the main reason why this digital currency is currently declining more than other cryptocurrencies.

Bitcoin Trading At Critical Level
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