Bitcoin and other significant cryptos are witnessing high-profit bookings that are pulling down the total crypto market capitalization. Retail traders view this as a buying opportunity because, for the past few months, the crypto market has been improving remarkably.
It is only wise to wait for cryptos‘ prices to stabilize and confirm a bottom before attempting to buy in a falling market. It is also essential to know where critical support levels are that might attract bottom fishing from bulls.
Bitcoin accounts own over 60% of the total crypto market cap. Dominance means it has tremendous momentum, which makes it a good investment.
eToro crypto-asset analyst Simon Peters said that the bullish market structure remains intact. Due to this, a market correction is highly unlikely unless the BTC price drops below the $10,000 mark it currently is, which will indicate that bears are in control. If prices go above this amount, the bear view will be invalidated, and the price will go back to above $11,000.
It shows that the bitcoin price will still rise despite the current plunge.
Ethereum is the current leader of smart contract platforms, bringing innovations into the world worth noting.
September 2 saw bulls defend the $415.634 price of the ETH and could not push the price higher. It coupled with aggressive selling the following day, causing the price to drop even further to $366.
If ETH breaks below its current price and turns down from its present resistance, a deeper correction to $288 is likely. If bulls can push the price above the 20-day EMA, ETH could remain range-bound for a few days returning its price to normal.
Recently, Polkadot(DOT) made its way into the top ten cryptocurrencies by market capitalization in the past week. Its stellar rally has been on the forefront to make this happen. The altcoin rallied from $2 on August 18 to $6.8619 on September 1. Traders started booking profits on this day hence the price shoot. The current correction sees DOT at $4.50, and if it’s able to maintain, it may rally to $5.7, even back to $6.8619.
Charles Hayter, the CEO, and founder of tracking platform CryptoCompare, explained that chainlink is at its core to bridge the gap between the world of blockchain and the outside world. Chainlink is the framework for creating a decentralized oracle network.
LINK dropped below $12.89 during the plunge. Currently, Chainlink (LINK) is trading in a descending channel while bulls try to maintain the $11 mark. After that, it is a huge probability to rise back to its original price before the drop.