In spite of the support, Bitcoin continued to fall well short of the 23.6% FIB Retracement Level of $6,757 and $7,000 levels needed to begin a near-term bullish trend formation, with the markets yet to fully dust off the recent negative news to hit the wires.
The Digital Currency market has made a new low for 2018 today as the overall market valuations have dropped below $200 billion.
YTD Bitcoin has retraced 57%, after soaring more than 1,300% in Y 2017. Ether sank 12 per cent, while all but one of the 100 biggest cryptocurrencies tracked by Coinmarketcap.com recorded declines over the past 24 hours. Bitcoin supporters believe approval would greatly increase the size of the crypto market.
At the height of Ether's rally past year, the digital coin comprised 32 per cent of cryptocurrency market capitalisation, coming within striking distance of Bitcoin's 39 per cent. Ether now makes up about 14 per cent, while Bitcoin accounts for 54 per cent after falling less quickly than its smaller peers, according to Coinmarketcap.com.
The market drop has helped Bitcoin cross that magical 50% level.
Ethereum (ETH), the world's second-largest cryptocurrency by market capitalization, tumbled to a nine-month low of below $300 on Monday.
At its lowest point of this year, the valuation of the crypto market reached $194 billion, led by the poor performance of Ethereum, Ripple, and Bitcoin Cash.
Currently, price action indicates that investors, and moreover traders, are more interested in events that could affect the immediate price action of Bitcoin, and that they are mainly looking towards upcoming Securities and Exchange Commission decisions regarding Bitcoin ETF approvals.
Following the SEC's decision to delay the CBoE VanEck/SolidX ETF, Bitcoin's price fell almost $500 instantly after the news broke.
Data on the CoinMarketCap shows that except the Bitcoin, nearly all the other top-twenty cryptocurrencies have lost between 10-20%.