Market Analysis: Support at $7,500-$7,600 Holds and Bitcoin (BTC) Bounces Back to $7,800, Crypto Market Still Mostly in the Red

May 23, 2019 / by Zachary Mashiach

Bitcoin steadily declined overnight and into the early morning hours, reaching as low as $7,500 at 5 a.m. Eastern time. For a moment, it looked like Bitcoin’s (BTC) support level was about to give way, which would have caused a crash. Instead, support held, and Bitcoin (BTC) bounced back to $7,800 by noon. Since then, Bitcoin (BTC) has been oscillating around the $7,800 level.

The stock market doing poorly today may be the reason support held instead of breaking. Stocks crashed at the opening bell at 9:30 a.m. and stayed down all day. There seems to be an increasing correlation between stocks doing poorly and Bitcoin (BTC) rising. The logical reason for this is investors who typically trade stocks may diversify into Bitcoin (BTC) when there are no profits to be made on the stock market.

Zooming out, Bitcoin (BTC) has been trading in a range between support at $7,500-$7,600 and resistance at $8,300-$8,400 since Sunday although there is a slight downtrend on average. Support at $7,500-$7,600 is the critical level to watch to see if Bitcoin (BTC) will drop significantly, and resistance at $8,300-$8,400 is the level to watch to see if Bitcoin (BTC) can rally to new 2019 highs.

The crypto market is generally in the red today despite Bitcoin (BTC) gaining since the early morning. The Bitcoin (BTC) dominance percentage has risen from 56.6% to 57.1% over the past 24 hours, suggesting that investors are selling altcoins to buy Bitcoin (BTC).

Ethereum (ETH) is down 2.9%, Ripple (XRP) is down 2.6%, Bitcoin Cash (BCH) is down 2.4%, Litecoin (LTC) is down 1.9%, EOS is down 3.1%, Stellar (XLM) is down 3.2%, Cardano (ADA) is down 3.2%, Bitcoin SV (BSV) is down 0.2%, Tron (TRX) is down 4.2%, Monero (XMR) is down 4.4%, Dash (DASH) is down 4.5%, IOTA (MIOTA) is down 5.3%, Cosmos (ATOM) is down 7.3%, and Dogecoin (DOGE) is down 1.8%.

A couple of major cryptocurrencies have managed to post some slight gains today. Binance Coin (BNB) is up 0.9% and Tezos (XTZ) is up 0.4%.

The total crypto market cap has dropped from $247 billion to $242 billion over the last 24 hours. However, the total crypto market cap is up $8 billion since 5 a.m. today when it dropped to as low as $234 billion.

The losses over the past few days have only put a slight dent in the crypto market’s recovery. The current total crypto market cap is 142% above the bear market low of $100 billion in December.