After recording the steepest daily drop in valuation over the past few years, the crypto market has been struggling to rebound in a convincing manner. This is what pushed the dominance index of Bitcoin to 55%, making Bitcoin tokens more than half present in the entire crypto world.
The 55% dominance index of Bitcoin is the highest point that the major cryptocurrency sees since December 2017. As the tokens lost out largely against the largest cryptocurrency by market cap, BTC’s index increased over the past few days from 51% to 55%.
A lot of people are confident that the crypto market did not experience a drop below $200 billion – or near the yearly low of $192 billion. However, it is safe to say that Bitcoin, Ethereum and most of the top altcoins recorded a steep downward trend with little to no support in the mid $6,000 margin.
The good thing is that Bitcoin rebounded from its bottom of $6,000 and is now trading around the $6,450 margin. What we can all learn from this price impact is that the Goldman Sachs announcement had no impact on the short-term price of BTC, but definitely seemed like a negative development for the overall cryptocurrency sector.
Even the chief of Goldman Sachs, Martin Chavez, refuted the reports that Goldman Sachs was the one to blame for the drop, with the delay of their Bitcoin trading operations. As he said during a TechCrunch conference:
“I think one of the wonderful things about us is that we get written about a lot. I never thought I would hear myself use this term but I really have to describe that news as Fake news.”
Right now, if Bitcoin fails to break out of the $7,000 resistance level in the next 24 to 48 hours and completely reverse its fall from the $7,400 mark, it is highly likely that the most dominant cryptocurrency will test the $6,000 resistance level – just like it did in April, June, and August.
The drop to $6,000, however, is not necessarily negative, as it would allow the dominant cryptocurrency to bottom out at its low price range and prepare for a new mid-term rally over the next couple of months.
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