The crypto market has been on quite a great run recently with bitcoin price breaking resistance levels and setting new highs. In fact, a sharp rejection resistance above $9,000 was very much expected throughout this week.
Finally, the expected happened, unfortunately, when bitcoin did reach $9k, an immediate fake out followed, and now the crypto prices have tumbled almost $30 billion in less than a day.
Crypto Market Cap Feeling the Heat
Fairly to say, the crypto market has been on a good run this year with several coins gaining and hitting new highs. As a result, the total market cap followed suit and reached a new high for 2019 of about $285 billion after the giant crypto bitcoin made its way above $9,000 (just yesterday).
However, the smiling faces of crypto enthusiasts were short-lived as the market cap was smashed almost 10% a few hours later plunging back to below $260 billion.
The sudden move means that it sent almost $30 billion out of the crypto assets back into fiat, giving way for fears of a massive correction.
Altcoins on the Receiving End
As ‘always’ the altcoins are the ones being walloped the most. Agreeably, most of the altcoins are still hopeless and coupled to bitcoin, in a manner that when the giant crypto goes down, they sink too (even further).
Ethereum dropped to around $250 in the 10% slide, and Bitcoin Cash also fell back to $420 losing a similar amount. Furthermore, EOS fell sharply to below $7.80 even breaking the $7.50 support level and hence currently down by 6.39%.
Tron (TRX) was not left behind as it also trimmed its gains declining below $0.0350. Sun-led crypto’s price is down by 10% and currently trading around $0.0315 with the next support level at about $0.0300.
Subsequently, Binance couldn’t stay above $34.00 as it also declined by 7.13% trading below $32.20 level with a further downtrend expected towards $30.50 level.
The Bigger Picture
Looking beyond the current drop, still, at around $260 billion, the market capitalization is up 7% for the week, 54% for the month and over 100% since the year began. For instance, May has been a standout month for the crypto sphere hence looking at the bigger picture; the movement could be termed minor.
But, Will Bitcoin Dump?
The big question now is whether bitcoin will go down by 25% or even more. Not too long ago, there have been calls across the crypto sphere for a pullback of such magnitude. But has it not happened over the last uptrend? In fact, eight times.
But if this is just the beginning, then bitcoin will get back to $6000 and stabilize. Currently, BTC has stabilized above $8,300 but a fall below $8k will set things into a rapid motion to below $7,400 zone, and beyond that point will be in the territory of 30% which could set an action for a mass accumulation at $6,000.
Perhaps, the current situation is a natural one that shouldn’t cause some significant concerns. As we write this, the crypto giant, Bitcoin, has started to recover a bit now though – so as the whole crypto market. But whether bitcoin holds above $8,000 level or the 30% correction is inevitable, only time will tell.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.