Investing.com – Fear and panic among market participants once again took hold, as the largest cryptocurrency in the market, Bitcoin, fell below the important 20K support levels.
A few minutes ago, the famous crypto expert said via a tweet on Twitter that a drop below the levels of $ 19.5 thousand will withdraw the markets’ liquidity.
On the other hand, the famous crypto expert, Dan Crypto, believes that Bitcoin has been subjected to maximum pain during the past days, while warning of weak weekend trading, which may witness some fluctuations.
Fear and greed
The data of the Crypto Fear & Greed Index, which measures the psychology of dealers in the crypto market, revealed a new plunge in the feelings of traders in the area of intense fear.
The crypto market has given up being in the fear zone only gradually since mid-August when it reached its highest levels since early April when it approached the 50-point levels.
Trader sentiment sank at 20 according to the latest reading from the Crypto Fear & Greed Index, coinciding with Bitcoin dropping below $20k levels.
The Crypto Fear & Greed Index is trading during Sunday’s trading at its lowest level since last July 18, when Bitcoin was near the levels of 19 thousand dollars.
What made matters worse was the erosion of Bitcoin’s dominance of the crypto market, coinciding with the price’s descent below the $20,000 levels, which in turn sent more negative signals to the market.
Blockchain currency observer Wu sees Bitcoin’s dominance at 39.75% now which is in a historically low range, and Wu attributed this decline to the fact that it may be related to a merger-driven rally.
Bitcoin’s share of the total cryptocurrency market capitalization is at its lowest in up to four years as of according to CoinMarketCap.
According to CoinMarketCap data, the dominance of Bitcoin in the cryptocurrency market has fallen to 39%, the lowest since June 2018, i.e. more than 4 years.
While the accelerator of Bitcoin dominance, according to Trading View accounts, fell to levels of 39.88%, and according to the calculations, it is still the lowest level in eight months.
The largest digital currencies are trading today, Sunday, below the levels of 20 thousand dollars, as traders await the next US Federal Reserve decision on interest rates.
The decline of cryptocurrencies comes with a wave of violent losses that hit the US stock market, amid markets pricing in the Fed’s move, with an increase of about 75 basis points, after the Fed’s minutes appeared last week.
Bitcoin fell during these moments in the range of 1%, amid weak trading, less than trading yesterday, Saturday, in the range of 15%, where it recorded 24 billion dollars during these moments.
Bitcoin fluctuates between levels of 19,644.71 and 19,883.07 thousand dollars per coin, while its market value is 413 billion dollars, compared to 972.5 billion dollars for the total crito market.