After a two-week long rally, crypto markets are facing a sudden, stiff correction. What does it mean?
Just as myriad analysts and experts were crying out that the Bitcoin rally we’ve all been waiting for was finally here, the market’s came a-tumblin’ down - and BTC isn’t the only coin that’s been affected.
Indeed, nearly $20 billion has been shed off of the total cryptocurrency market caps’ weekly high of over $186 billion. At the time of writing, the total cryptocurrency market cap sat at roughly $170 billion but had reached as low as $167 billion overnight.
Bitcoin seems to have led the drop. After the price of BTC briefly surged to $5400 yesterday, a wave of selling pressure sent the coin back down to $5050--still an improvement from where it sat a week ago at $4850, and a leap above $4070, where it sat two weeks ago.
Still, the downward motion sparked a domino effect throughout crypto markets as a whole. According to a report from NewsBTC, analysts believe that the price of BTC could quickly drop as low as $4200 in the immediate future “before it finds a significant amount of support.”
There is the start of the drop I have been saying :)
RSI channel MUST break. Evaluating the RSI again, I do believe we could go low as
$4390 (.5 fib)
$4.2 (.618 fib) level
I'd be surprised if we go lower (will re-evaluate when levels reached)
48 & 39 RSI Im watching :) pic.twitter.com/YJNCIcNmt9
— The Cryptomist (@TheCryptomist) April 11, 2019
Some analysts are blaming the market drop on the fact that Brexit was recently delayed by six months. Ethereum World News explained that when it seemed like a no-deal Brexit was looming imminently, “Analysts were calling for crypto as an alternative to the British Pound and Euro, given that both currencies were facing a convoluted and likely volatile future.”
However, news that both the pound and the euro are safe for now may have caused crypto buyers to “cool it,” at least for a while.
A Healthy Dose of Reality
Earlier this week, Gabriel Dusil, Co-Founder and General Manager at Blockchain technology incubator Adel, told Finance Magnates that the sudden upward motion in the cryptocurrency markets didn’t mean much in the big picture.
“This spike doesn’t mean we are in a bullish trend, we need to look at longterm picture and that shows we are in a correction,” he said. “Price can as easily drop down as it can go up. Those who were buying in 2/2 of 2017 are still in loss. We need to see prices at 8k area to say we are in recovery and a bullish trend has [truly] been established.”
However, if markets do manage to break through $8k, we could start to see some serious price action. “If we break $8k, we can say the bullish sentiment is back and we are on our way to all-time high. At the $12k area, we could see the start of FOMO (fear of missing out) that could bring new speculators in, and with fresh capital in crypto, we could see the prices surpassing the 2017 heights,” Dusil explained.
But this latest downward movement is a reminder that meaningful upward price movements are few and far between. Additionally, a healthy correction every once in a while can help to keep huge speculative bubbles from forming.
Just as myriad analysts and experts were crying out that the Bitcoin rally we’ve all been waiting for was finally here, the market’s came a-tumblin’ down - and BTC isn’t the only coin that’s been affected.
Indeed, nearly $20 billion has been shed off of the total cryptocurrency market caps’ weekly high of over $186 billion. At the time of writing, the total cryptocurrency market cap sat at roughly $170 billion but had reached as low as $167 billion overnight.
Bitcoin seems to have led the drop. After the price of BTC briefly surged to $5400 yesterday, a wave of selling pressure sent the coin back down to $5050--still an improvement from where it sat a week ago at $4850, and a leap above $4070, where it sat two weeks ago.
Still, the downward motion sparked a domino effect throughout crypto markets as a whole. According to a report from NewsBTC, analysts believe that the price of BTC could quickly drop as low as $4200 in the immediate future “before it finds a significant amount of support.”
There is the start of the drop I have been saying :)
RSI channel MUST break. Evaluating the RSI again, I do believe we could go low as
$4390 (.5 fib)
$4.2 (.618 fib) level
I'd be surprised if we go lower (will re-evaluate when levels reached)
48 & 39 RSI Im watching :) pic.twitter.com/YJNCIcNmt9
— The Cryptomist (@TheCryptomist) April 11, 2019
Some analysts are blaming the market drop on the fact that Brexit was recently delayed by six months. Ethereum World News explained that when it seemed like a no-deal Brexit was looming imminently, “Analysts were calling for crypto as an alternative to the British Pound and Euro, given that both currencies were facing a convoluted and likely volatile future.”
However, news that both the pound and the euro are safe for now may have caused crypto buyers to “cool it,” at least for a while.
A Healthy Dose of Reality
Earlier this week, Gabriel Dusil, Co-Founder and General Manager at Blockchain technology incubator Adel, told Finance Magnates that the sudden upward motion in the cryptocurrency markets didn’t mean much in the big picture.
“This spike doesn’t mean we are in a bullish trend, we need to look at longterm picture and that shows we are in a correction,” he said. “Price can as easily drop down as it can go up. Those who were buying in 2/2 of 2017 are still in loss. We need to see prices at 8k area to say we are in recovery and a bullish trend has [truly] been established.”
However, if markets do manage to break through $8k, we could start to see some serious price action. “If we break $8k, we can say the bullish sentiment is back and we are on our way to all-time high. At the $12k area, we could see the start of FOMO (fear of missing out) that could bring new speculators in, and with fresh capital in crypto, we could see the prices surpassing the 2017 heights,” Dusil explained.
But this latest downward movement is a reminder that meaningful upward price movements are few and far between. Additionally, a healthy correction every once in a while can help to keep huge speculative bubbles from forming.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Bitget's Bitcoin Reserve Ratio Soars Over 300% Following Halving
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
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20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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