Bit-comment: Bitcoin’s drop below $9000 may demotivate bulls

Bitcoin declined more than 4% over the last 24 hours and is trading below $9,200. A drop below $9K may provoke a trend reversal for the entire crypto market. This level itself acts as an intermediate round level. Besides, a 200-day average passes through it, and the substantial price dynamics under this level can finally demotivate the bulls.

The altcoins once again demonstrated a peg to the benchmark cryptocurrency, declining by 7-13% within the TOP-10 coins, driving the Bitcoin dominance index up to 64.1%. The primary beneficiary of the sale-off may be the stablecoin Tether (USDT), which is, in fact, a digital safe-haven for holders of cryptocurrencies.

During the periods of sharp fluctuations, investors prefer to wait for the end of the storm in USDT. The stock market and gold are also experiencing bad times at the moment: indices are declining, as well as the precious metal. In this case, it turns out that Bitcoin is neither a counterweight to stocks nor a digital equivalent of gold.

The FxPro Analyst Team