Bitcoin bulls have lost a critical support line as bears show the first signs of a downtrend. The market’s number one coin now trades below $20,000 as of Saturday. The token might be reacting to the news that G7 countries placed a fresh ban on Russia’s energy export.
The Weak Hand of Bulls
Information from TradingView and Cointelegraph indicate that there is currently a lukewarm performance in the BTC/USD trade relation. It trades at $19,800 as of the time of this report.
Bitcoin continuously looks like it is incapable of turning the tides around to secure $20,000 and a good support structure as the weekend goes on. There is currently a jaded mood in the market among traders as a result.
BTC/USD price chart. Source TradingView
A popular crypto trader, Cheds, indicated that the strength of the 8 days exponential moving average resistance keeps growing as it enters September. The US stock market managed to close a volatile week with the Nasdaq index ending at 3.25% lower and S&P 500 going 2.7% lower on the week.
In Europe, oil prices dropped after the announcement that there might be a price cap from Russia by the end of the year. There are possible implications of price increases further if Russia responds.
Russia already put a hold on supplying gas to Europe after the price cap was announced. The excuse was a need for technical maintenance, which was scheduled to begin on the 3rd of September.
Power Contest in Europe Over Gas
A Bloomberg energy columnist, Javier Blas, said it looks like Gazprom is implying that the only functioning turbine where Nord Stream 1 is will be fixed abroad at Siemens Energy workshop. And the pipeline will not be restarted till that is concluded. This was in response to the statement released by Gazprom over the gas downtime.
Meanwhile, the Bitcoin bulls’ absence in the market to pull strong effects is starting to be apparent. Bitcoin’s part of the entire cryptocurrency market capitalization is now at its lowest level within the last four years as of the 3rd of September.
CoinMarketCap says Bitcoin market dominance is now down to 39%. It is the asset’s weakest outing since the month of June 2018. TradingView, however, puts it at 39.88%. It is still within eight months of low levels.
Before now, Cointelegraph made a report concerning the need for the crypto market to preserve its capitalization at a 200 weekly moving average. It is a significant point in bearish markets.