The inevitable market correction has started and altcoins
are leading the drop. From a new 2019 high of $186 billion yesterday, total
market capitalization has plunged by $18 billion as recent gains get wiped out
The Bears Are Back In Town
Bitcoin failed to break resistance at $5,400 and has fallen
back to around $5,000 resulting in a 24 hours loss of 5 percent as BTC drops to
its lowest level for a week. Many had predicted the pullback and it has finally
started as losses accelerate. Holding $5k will be crucial for Bitcoin if it is
to maintain all previous progress and make further moves. At the time of
writing BTC is trading at $5,050 on Tradingview.com, a minor recovery after hitting
a low of $4,950 a few hours ago.
Altcoins are leading the losses at the moment with several
of them dumping hard. Litecoin, which has had a sterling year over doubling in
price, has dropped 9% today sliding back to $78. LTC is level pegging on market
cap with EOS in fourth as it drops 6% back to $5.30. Bitcoin Cash has also
dumped over 6% as it falls back below $270. Bitcoin SV has been trounced
dumping over 10% back to $70 and Maker is also in pain with a loss of 9% on the
day as MKR falls to $630.
Markets have hit their lowest levels for a week today but
they are still up 18% since the beginning of April so all it not lost just yet.
Many altcoins are also still way up from their lows in mid-December so unless
there is a return to that, when total cap dropped to $100 billion, today’s dump
is just another minor market cycle. Some have blamed
Brexit but in reality this is very unlikely to have had an effect on crypto
Golden Cross Approaching
Analysts are of mixed opinion as to whether this is the beginning
of the final capitulation, mirroring movements from 2015, or it is just another
minor correction. A ‘golden cross’ formation is approaching for Bitcoin which
could be keeping optimism high at the moment. This is a bullish reversal when a
shorter term moving average, usually a 50 day, crosses a longer term one which
is usually the 200 day.
$BTC about to have its first bullish 20-200 SMA cross since Oct 2015. Note that it took 2 of these crosses before the uptrend began.
I’m not usually one to try and call out absolutes like “THE BOTTOM IS IN!!!”, but it’s certainly shaping up like that could be a real possibility. pic.twitter.com/AG1L2CUmhq
— Jonny Moe (@JonnyMoeTrades) April 10, 2019
In previous bear
markets these indicators have served as strong signals that the trend is
about to reverse and turn bullish. The past two weeks have certainly
rejuvenated the crypto sphere as pumps reminiscent of late 2017 were seen
across the board. The next couple of days will be critical for Bitcoin and its