The cryptocurrency market went through a complete overhaul over the past 24 hours with the bear reigning supreme. Bitcoin, which was holding near the $8000 mark for an extended period of time, crashed by more than 30 percent over the past day. The fall also triggered the rest of the altcoin industry to follow, making Friday the 13th a really scary event.
At the moment of writing, Bitcoin was trading for $5091 with a total market cap of $93.02 billion. The market cap was a far cry from its previous hold near the $150 billion mark, causing investors to run helter-skelter. The crash came as a surprise to many because the price was supposed to go up before the Bitcoin halving in May.
Bitcoin:
Over the past 24-hours, Bitcoin went through its biggest crash since October 2019. The world’s largest cryptocurrency fell by more than 44 percent in the past 7 days with the market volume taking a massive hit. The immediate support after the fall was formed at 4877 with the red candle showing no sign of stopping.
The Bollinger bands had diverged to its full extent after the bear ripped the earlier supports to shreds. The Bolinger cloud had expanded massively because of the bear crash.
The Relative Strength Index had crashed below the overbought zone. This was a sign of massive sell-offs in the Bitcoin market due to the dip in prices.
The Chaikin Money Flow indicator was also down in the trenches like the RSI. It has become clear that investors had put a hold on the capital coming into the Bitcoin market.
Ethereum:
The second-largest cryptocurrency in the market was no match for the bear market as Ethereum fell below the $130 mark after a long time. Ethereum’s immediate support was at 111.2 as signs of an ‘altcoin surge’ was nowhere to be seen.
The Relative Strength Index was similar to that of Bitcoin’s, staying under the oversold zone. The ETH RSI at the moment was the lowest since December 16, 2019.
The Chaikin Money Flow did not instill any confidence in Ethereum’s immediate capital gains. The indicator showed that the capital leaving the Ethereum market was much more than the capital coming in.
The Bollinger cloud for Ethereum was large in size because of capital displacement. The fall has been so great that the red candle fell out of the cloud.
XRP:
XRP was supposed to have a resurgent 2020 but it looks like Ripple’s native cryptocurrency will have to deal with the bear first. At the time of writing, the cryptocurrency was trading for $0.14 with a total market cap of $6.28 billion. XRP’s immediate support had also fallen to $0.1391.
The Chaikin Money Flow indicator for XRP was the lowest its ever been since August 2019. Investors revealed that they were holding on to capital until there was a significant increase in volume.
The Relative Strength Index had fallen below the oversold zone. This change in selling pressure was expected since the start of 2020.
The Bollinger bands showed the same price crash pattern as Bitcoin and Ethereum. XRP’s red candle had also fallen out of the Bollinger cloud.
Conclusion:
The entire cryptocurrency market was in a state of panic just like the NASDAQ and the S&P 500. Some proponents believe that the price crash would result in many scam projects and programs to dissolve, thereby creating a more effective ecosystem.