Over the past seven days, the cryptography market has declined by more than $ 63 billion, as the major cryptocurrencies have seen double-digit declines.
Bitcoin (BTC), the most dominant cryptocurrency on the market, fell 12% from $ 4,300 to $ 3,800, reaching a new annual low. At its lowest daily point, on fiat-to-cryptocurrency exchanges such as Coinbase and Kraken, the price of BTC dropped to $ 3.456.
Ethereum (ETH), which is currently demonstrating a larger daily volume than that of Ripple (XRP) and Bitcoin Cash (BCH) combined with $ 2.2 billion, dropped to $ 98, dropping to a double figure for the first time since May 2017.
Finally the bottom arrives?
With Ethereum at $ 98 and Bitcoin at $ 3.456, technical indicators show oversold conditions for both major digital assets. Probably due to oversold conditions, BTC recovered relatively quickly from $ 3,400 to $ 3,700 in just a few hours.
At $ 3,456, BTC is down 82.2% from its all-time high of $ 19,500. When the price of BTC initially fell to $ 4,000, many investors suggested the possibility of a further fall below the value of $ 4,000 given that at $ 4000, BTC was only down 79% from its historical high.
On average, BTC tends to lose 85% during a major correction, as shown in past price changes in 2011, 2013 and 2015.
Following the expected fall of BTC below the value of $ 4,000, traders have become more comfortable finding a short-term minimum in BTC's price performance.
A cryptocurrency trader and economist Alex Krüger He said:
"It is impossible to know if a fund is a short or long term fund." It is possible to perceive once a larger fund can be inserted by observing price bars and high frequency volume, ie when 39, elastic is ready to go back in. If it is 15-30% lower than the lows, it is a larger fund in% terms. "
Hsaka, a technical analyst, pointed out that it is too early to define a short-term fund for Ethereum, as it has suffered a significantly greater decline than BTC.
"Really stopped here.This wick could be filled with cascading liquidations and poor books, looking for an HL on any retracement to confirm a daily minimum," said Hsaka, echoing the sentiment of many market investors who are wary of of the short-term trend of the third most important cryptocurrency in the global market.
The market will require a strong recovery period
The cryptocurrency market has experienced large bear markets in the past. While the market infrastructure is drastically different in 2018 with the involvement of major financial institutions, liquidity providers and regulators, the intensity of the fall of the major cryptocurrencies will likely require a long period of consolidation.
In every bubble to rally cycle cycle in crypts, newcomers and investors suffer intensely, both psychologically and financially. It is absolutely possible for institutional investors to lead the next rally in a crypto, but for investors who have been hit by the recent incident to invest in the crypt could take some time.
Shutterstock foreground image. TradingView Charts.
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