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The crypto market this morning is a sea of red, following a massive breakdown by the leading cryptocurrency by market cap, Bitcoin. The market leader breaking down has led to as much as 10% declines across the board in most altcoins, including Ethereum, EOS, Binance Coin, and many others.

Is this time to buy the blood in the streets, so to speak, or has the crypto market carnage only just begun?

Altcoins Bleed Out As Bitcoin Breaks Through Support

This morning, Bitcoin price broke down from support at $7,400 to quickly dip below $7,000 before bouncing at roughly $6,800 and now trading around $7,150 at the time of this writing. The powerful drop and resulting panic not only caused Bitcoin price to tumble, it caused a dramatic ripple effect across the crypto market.

Related Reading | What Bull Run? Bitcoin Price Blasts Below $7,000

Following Bitcoin’s drop, the number two crypto asset by market cap, Etheruem, has fallen over 10% to low around $135. The third-place cryptocurrency, Ripple, has dropped to as low as 23 cents per XRP, but percentage-wise Ripple has held up better than most other altcoins at just a 5% fall.

Further down the top ten, Bitcoin Cash has dropped 10%, while Bitcoin SV suffered only a 6% loss. Litecoin, the silver to Bitcoin’s gold, has seen 9% eliminated from the value of the crypto asset.

EOS, Binance Coin, and Monero all saw 10% losses, while Stellar, Tron, and Cardano kept losses at bay to just 6%.

Lower down the list, with Chainlink, VeChain, and NEO, losses extend to over 10%, but the deeper decline is likely due to an over-correction from recent rallies in each altcoin asset.

Total Crypto Market Suffers $20 Billion Loss

The total crypto market cap saw over $20 billion wiped out from its total value over the last 24 hours as a result of the ongoing Bitcoin and altcoin selloff.

Related Reading | Altcoin Volatility Rising, But Alt Season Won’t Arrive Until Bitcoin Volume Returns 

Market sentiment has turned bearish, and the crypto fear and greed index, has reached levels of extreme fear. As recent as earlier this week, the index had only just tipped in favor of fear after spending a period of time neutral.

The market is likely extremely fearful that the bear market isn’t over, and that Bitcoin and the rest of the altcoin space could set new lows, or at the very least fall back toward where bear market lows were set, to confirm breakout points as resistance turned support.

Bitcoin dominance has been falling in recent weeks, suggesting that altcoins are holding up in value better than the first-ever cryptocurrency. Many altcoins, such as XRP have already set fresh bear market lows in 2019 after bottoming in 2018 – could the rest of the market be next?

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Tony Spilotro , 2019-11-22 18:00:28

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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