After having a reasonably positive few days, the cryptocurrency market has almost managed to stabilize for a short period. From September 21 to September 23, there were only tiny market fluctuations for the global cap, as well as most coins and tokens. The fluctuations may have been of minor concern to day-traders, but for most other investors they were nothing to worry about. However, September 24 seems to suggest that a slight decline is about to be felt. September 24 has started the week off with a steady downward turn, which is being noticed with a significant number of coins and tokens. It could spell bad news for the days to come, but it is too early to tell how much damage it will cause.
The market fluctuates in the same way bitcoin does
As usual, the general cryptocurrency market is following the trends of bitcoin. A glance at the global market cap will reveal a pattern extremely similar to BTC’s, with perhaps the only significant difference being that on September 21, bitcoin moved up significantly which was not shared with all other cryptocurrencies. The September 24 upcoming decline for the market cap does, however, fully match BTC’s. If anything, this still makes it abundantly clear that BTC is the dominant force in the entire industry, and its movements are easily felt by most traders regardless of the crypto assets they engage in.
To reinforce this, BTC’s dominance in the market is at its highest this year. On September 11, BTC held a 57% dominance. Ethereum’s dominance, on the other hand, has fallen to a mere 10%— the highest ETH has ever risen is 32% back in 2017. A fair correlation to make is that during bear markets, BTC’s dominance is reinforced.
A possible reason for this upcoming decline could be linked to the fact that the SEC chose to delay the Bitcoin ETF date. It is well-known that the SEC’s reaction to BTC has a direct effect on the market.
The general market is moving downward
A glance at CoinMarketCap reveals that of the top 100 coin and tokens by market cap, only six are currently rising (excluding both Dia and Tether as they are stablecoins). As the market fluctuates and leans downward, it is harming the actions of most traders. Of course, the temperamental nature of cryptocurrency means that this could change sometime soon. Since August 2018, it has been a struggle to make sensible predictions which extend over seven days. The fact that the market fluctuates so regularly and devoid of sensible patterns makes most efforts regarding technical analysis futile.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.