Cryptocurrency Market Update: Bitcoin tumbles to $7,300, why no one wants to buy the dip?

• Bitcoin, Ethereum and Ripple post worrying losses in a crypto market that is mainly in the red.
• Binance supports trading of futures against BTC via its recently launched cross collateral function.

Bitcoin bearish party seems to be utterly unstoppable. The selling pressure has been unrelenting on Thursday and could last throughout the day’s trading sessions. Data by CoinMarketCap shows that the market cap has lost over 17 billion from the $223 billion recorded on Wednesday to $206 billion at the time of writing.

The reported trading volume is, however, on the rise, from $136 billion to $144 billion in the same period. Intriguingly, Bitcoin dominance has increased from 64% to 65.6%, to show that altcoins led by Ethereum have taken a huge plunge.

BTC/USD continued with the breakdown, sliding below $7,400. The losses closed in on $7,300 but formed an intraday low at $7,305. Bitcoin price is trading 7.21% lower on the day. The trend remains bearish while the volatility is shrinking. A return above $7,400 and $7,600 is required to ensure that Bitcoin is out of the danger of dropping towards $7,000.

ETH/USD is at the forefront of the losses among the top ten cryptoassets. Ethereum price failed to hold above $190, which triggered losses to $166.6 (intraday low). Meanwhile, ETH/USD is trading at $168.92 after saying goodbye to 13.24% of its value on the day. As long as Ethereum remains under $170, risks of breakdown to $150 will also remain at peak.

XRP/USD tried to hold above $0.20, however, the selling pressure in the market forced the price lower to the extent of testing support at $0.1800. An intraday low has been reached at $0.1838 but Ripple price has adjusted slightly upwards to $0.1881. The third-largest asset is still dealing with a loss of 9.63% on the day. For now, the plan should be to push the price above $0.20, a move likely to bring $0.30 in sight again.

The Coronavirus pandemic is likely the force behind the selloff. Investors could be selling in panic as the disease ravages through countries around the world. New travel bans and restrictions have become the order of the day as countries work hard to keep the virus in check. Despite the opportunity to buy low, investors prefer to watch but from a far distance. The effect of the Coronavirus on the stock futures has everyone on the edge and the selloff in the crypto market is worrisome.

Chart of the day: BTC/USD 1-hour chart

Binance Futures supports trading BTC against futures

Binance, a leading cryptocurrency exchange company has announced that traders will be able to trade futures against BTC on its Binance Futures platform via the Cross Collateral feature. The move comes as one of the first among other exchanges to provide users with numerous digital assets as collateral. This means users can still make profit from the up and down movements of the prices in the crypto market and not have to sell their BTC at a compromised price.

 

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