Crypto Market Crashes: Bitcoin Plunges 12.9%

Why Did Bitcoin and the Crypto Market Tumble Yesterday?

Bitcoin took a nosedive on Tuesday, plunging by 12.9% and wiping out Monday's 6.1% gain. It ended the day at a measly $9,423.8, falling well short of the $11,292.6 resistance level it had briefly touched earlier in the day.

The sell-off extended throughout the day, sending Bitcoin crashing through several support levels, including $10,114.6 and $9,408.3. Even more significant was the drop below the 38.2% Fibonacci retracement level of $9,734.

Bitcoin's market capitalization plummeted from $196 billion to $165 billion before stabilizing.

How Did the Rest of the Crypto Market Fare?

The bloodbath wasn't limited to Bitcoin. The entire top 10 cryptocurrencies plunged into the red, with Tron's TRX leading the pack with a 17.29% drop. EOS and Bitcoin Cash SV followed closely behind with losses of 14.56% and 13.91%, respectively.

Ethereum (-12.84%), Binance Coin (-12.68%), Litecoin (-11.99%), and Bitcoin Cash ABC (-11.1%) also suffered double-digit losses.

Ripple's XRP was the only exception, with a relatively modest 5.71% decline.

What's Bitcoin's Dominance Looking Like?

At the time of writing, Bitcoin's dominance stands at 66%, down from Tuesday's high of 66.88%. Tuesday's sell-off and this morning's modest gains have reversed Bitcoin's dominance trend.

Where Did the Total Crypto Market Cap End Up?

The total crypto market capitalization tumbled from a Tuesday high of $290.48 billion to a low of $250.67 billion. As of this writing, it sits at $257.22 billion.

What's Bitcoin Doing This Morning?

At the time of writing, Bitcoin has recovered slightly, gaining 0.42% to $9,463.7. It started the day on a choppy note, falling to a morning low of $9,221.6 before rebounding to a high of $9,615.

Despite the volatile start, Bitcoin has left the major support and resistance levels untested so far. It has also fallen short of the 38.2% Fibonacci retracement level of $9,734.

Where Are the Other Cryptocurrencies Heading?

The rest of the crypto market is showing signs of recovery this morning. Bitcoin Cash SV and Bitcoin Cash ABC are leading the charge with gains of 3.55% and 2.60%, respectively.

Tron's TRX (+2.39%), Binance Coin (+1.92%), and Ethereum (+1.65%) are also finding strong support.

Litecoin is trailing the pack, mirroring Bitcoin's modest 0.14% gain at the time of writing.

What's the Outlook for Bitcoin and the Crypto Market?

A move back above the 38.2% Fibonacci retracement level of $9,734 and towards $9,900 would support a run at $10,000.

However, Bitcoin would need the support of the broader market to break through the first major resistance level at $10,505.87.

Without a sustained crypto rally throughout the afternoon, Bitcoin is likely to fall short of $10,000.

A failure to reclaim the 38.2% Fibonacci retracement level of $9,734 could trigger a reversal for Bitcoin. A drop below this morning's low of $9,221.6 would bring sub-$9,000 levels into play before any recovery.

Unless another crypto meltdown occurs, Bitcoin should steer clear of the first major support level at $8,846.87.