Bitcoin Hits the Reset Button as August’s Gains are Wiped Out

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BTC suffered a further drop Tuesday following the weekend’s fall to all but wipe out August’s gains. Following the principle that what comes up must come down, BTC started gradually stumbling towards and then eventually fell off the $11,400 cliff, dropping to lows of $10,400 before recovering to creep back up over $10,600. Interestingly for those waiting for alt season, the vast majority of coins remained stable or gained in both their dollar price and their BTC price, suggesting that the bottom might finally be in for the alt market.

Bitcoin’s Drop Comes as No Surprise

Very few people will have been surprised by BTC’s retracement following its $3,000 rise this month, with the only real bone of contention being how low it will fall and how much of an impact it will have on the mini bull run that investors have been enjoying this year. With the Crypto Fear and Greed Index standing at an incredibly low 11, the lowest levels seen since December 2018, it’s clear that the selling is almost done and a reversal is imminent, although a further drop to the next key support of $10,300 is still possible. Dropping further below these levels has the risk of undermining confidence in BTC’s overall recovery, although this is unlikely given the fundamental catalysts that the ecosystem is already building towards.

Alts Weather the Storm

Alts performed admirably during BTC’s reversal, with only 3 of the top 50 coins performing worse than BTC, and many failing to move at all. BTC which was in fact the 12th worst performing coin on CoinMarketCap, meaning that 2,435 coins weren’t impacted by BTC’s fall. This suggests that the majority of alt selling could over and that a recovery may be on the cards in certain quarters. Of course it’s far too early to call an alt season or anything of the kind, but when notoriously jumpy tokens start shrugging off BTC’s mood swings you know something is brewing.