Bitcoin tumbled by 7.72% on Wednesday. Following on from a 4.44% slide on Tuesday, Bitcoin ended the day at $10,064.6.
A bearish start to the day saw Bitcoin fall from an early intraday high $10,909 to a late morning low $10,403.
Steering clear of the major resistance levels, Bitcoin fell through the first major support level at $10,646.67.
Finding support through the late morning, Bitcoin recovered through the first major support level before hitting reverse.
A broad-based crypto sell-off saw Bitcoin slide to a late intraday low $9,966 before moving back through to $10,000 levels.
Bitcoin slid through the first major support level at $10,646.67 and second major support level at $10,389.33 to visit sub-$10,000 for the first time since 1st August.
A recent bearish run that has seen Bitcoin in the red on 5 of the last 6 days reversed gains from earlier in the month. For the month of August, Bitcoin was down by 0.23% to the end of Wednesday and down by 16.13% year-to-date.
Across the top 10 cryptos, it was a sea of red for the majors.
Tron’s TRX led the way down, sliding by 14.2%. Ripple’s XRP (-11.55%), Ethereum (-10.64%), Litecoin (-10.27%), and EOS (-10%) also saw particularly heavy losses.
Stellar’s Lumen and Bitcoin Cash SV had the lightest losses on the day, with the pair falling by 7.1% and by 5.99% respectively.
The crypto meltdown led the market cap down from $285.57bn to a Wednesday low $262.62bn. At the time of writing, the total market cap stood at $265.33bn.
Bitcoin’s more modest sell-off on the day led to its dominance level recovering to 68% levels. At the time of writing, Bitcoin’s dominance stood at 68.3%.
For those looking towards Bitcoin and the broader crypto market as a safe haven, the meltdown came amidst a sell-off across the global equity markets on Wednesday.
Fears of a recession, resulting in bond yield inversions, led to investors pulling out of all risky assets, including the cryptos.
At the time of writing, Bitcoin was up by 1.12% to $10,177. A bullish start to the day saw Bitcoin bounce from a morning low $10,066.4 to a high $10,249 before easing back.
Bitcoin left the major support and resistance levels untested early on.
Elsewhere, there was relief across the crypto-board following the Wednesday meltdown.
Tron’s TRX led the way early, up by 2.27% at the time of writing. Litecoin (+1.39%), Ripple’s XRP (+1.12%), Ethereum (+1.07%), and Bitcoin Cash ABC (+1.01%) also found strong support.
Binance Coin trailed the majors early on, rising by just 0.32%.
For the Bitcoin day ahead
Bitcoin would need to move through to $10,310 levels to support the recovery of Wednesday’s losses. A breakthrough to $10,310 would bring the first major resistance level at $10,660.4 into play.
Bitcoin would need the support of the broader market, however, to break out from $10,300 levels.
Barring a broad-based crypto rebound, Bitcoin will likely fall well short of Wednesday’s high $10,909 and $11,000 levels.
Failure to move through to $10,310 levels could see Bitcoin take another hit. A fall through to sub-$10,000 would bring the 38.2% FIB of $9,734 and first major support level at $9,717.4 into play.
Barring another crypto meltdown, Bitcoin should steer well clear of the second major support level at $9,370.2.