Bitcoin price started off the post-Labor Day week by trading down 4.5% on moderate trading volume. The largest cryptocurrency sank below $19,000, falling more sharply. At the time of writing, BTC is changing hands at $18,859.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Dips Below $19K, Hitting Lowest Point in Two Months
Bitcoin and Ether took divergent paths as BTC traded down while ETH rose early in the day ahead of the much-anticipated transition of Ethereum to a proof-of-stake protocol from proof-of-work. ETH prices traded down as the day progressed.
BTC price fell to $18,680, a point not seen since June 30. The price drop came after a 10-day stretch during which bitcoin traded right around the $20,000 mark. The largest cryptocurrency by market capitalization had struggled to overcome what appeared to be price resistance at $21,000.
High levels of leverage as an element of medium-term instability.
“The nearest liquidations for long positions are approximate $19K-$17.5K. The nearest liquidations for short positions are around $21K-$22K.”
by @BaroVirtualRead More👇https://t.co/pDBWxOZUY3
— CryptoQuant.com (@cryptoquant_com) September 6, 2022
Ethereum will likely hold center stage for weeks, as crypto investors await the results of the Merge, which was first announced in December 2020. With the move, minting new ether tokens will consume a lot less energy than before. The potential also exists for ETH to become a deflationary currency post-Merge, which would result in a lower overall ETH supply. A lower supply of ETH is likely to cause higher valuations for current holders of ETH, something that is driving ether higher now.
Out of the top ten biggest cryptocurrencies, Bitcoin is one of the worst performers today. Its nearly 5% 24-hour loss has only been surpassed by Polkadot and Cardano, which are down 5.7% and 6.1% respectively in the same time frame.
The overall cryptocurrency market cap stands at $942 trillion, and Bitcoin’s dominance rate is 38.2%.
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