After once again reaching an important capitalization total, topping at $303.84 billion USD, the digital market began a correction after rising for almost two weeks in a row.
However, it was a dramatic plunge over the last three days that left the market with a total capitalization of $225.69 billion USD, losing $78,15 billion _ or 34.62% _ from July 24 to the moment of writing this article.
This type of behavior creates uncertainty among investors and those who still don’t fully understand the crypto market and are looking for quick answers to these dramatic swings.
This time, we can attribute the downfall to the U.S. Securities and Exchange Commission (SEC), which delayed a decision on Bitcoin exchange-traded funds (ETF) until September 30, according to a SEC statement issued on Wednesday, when the world’s main digital asset price fell to $6,190 dollars.
Companies like VanEck and Soldix are promoting this kind of alternatives, which are looking for a massive adoption of cryptocurrencies as passive and regulated investment tools.
However, the SEC decided to take some time to decide and determine changes to the ETF rules on BTC stock, and weigh an approval, rejection or further delays.
In the meantime, the market suffered an significant downturn and it’s important to ask yourself if this is a good time to invest or cryptocurrencies will keep falling.
In the following graphic we’ll see a green line in which we can find a support line that could resist as far as $6,070 dollars. The first promising bounce back came on Thursday, sending the BTC to around $6,400 dollars. As long as that line remains in place, we can be sure that Bitcoin will remain above 6,000 dollars.
However, if the line breaks, the Bitcoin value could freefall to $5,400 USD.
For the time being, after the slight bounce back we saw a recovery process around the market, which can be noticed on the graphic, with a light green shade on Coin Market Cap’s World Top 10 cryptocurrencies.
By Omar Cortés