The crypto-correction of the weekend continues into Monday, and Bitcoin is falling back towards support. The Altcoins, which have recovered strongly lately, are now suffering from even worse pain with numerous crashes in the double-digit percentage range.
The total crypto market capitalization has lost another $15 billion in the last 24 hours. The decline brought the overall cap back to $280 billion, which is still 47% more than at the beginning of the year.
Bitcoin has once again failed to break the $10,000 barrier, and further losses are expected. But how low will BTC fall this time?
Bitcoin continues to plummet
Lower highs are being reached on the Bitcoin graphics, which means that the short-term downward trend is accelerating. BTC could not break the resistance at $10,000 a few hours ago and has since fallen back towards $9,700 where support is found.
If this level is not maintained, BTC is expected to fall back to $9,350 where further support is found. Should this crucial zone be breached, things could quickly get ugly with a possible fall back to the low $8k region.
However, most analysts and traders remain optimistic. Some point out that the correction is less than 10% of this year’s 46% rise.
Corrections are a natural part of market cycles, as the price does not move in a straight line. A 10% drop from recent highs would push prices down to around $9,450, and this appears to be the next range BTC is targeting.
Last week, US Treasury Secretary Steven Mnuchin warned that “significant” new Bitcoin and crypto currency regulations are on the way – a message that has been turned into pure FUD (“Fear, Uncertainty & Doubt”) by some mainstream media.
Crypto regulations would be welcome in the US, as the country has largely postponed all regulations related to the crypto industry in recent years.
What happens with Altcoins?
Bitcoin maximumist Jimmy Song adds: He would welcome a correction of 10-20% if Altcoins dump 70% – which can hardly be called a constructive attitude.
His wish seems to come true, as hopes for an Altcoin dump are dwindling and most people are in pain today. Some of them have to accept double-digit losses.
Ethereum, which has risen more than twice as much as Bitcoin this year, lost 8% that day, falling to $250.
Ripples XRP suffers even more pain with a fall of 11% and is now back below $0.30. Bitcoin Cash had to leave 14% behind and is now below $400. Similarly, BSV and EOS, which are down 13% to $270 and $4.20 respectively.
Cardano, Stellar, Tron, Ethereum Classic and Dash have to accept further enormous losses. When Bitcoin falls, the Altcoins are finally dropped as well – but we’ve seen all this happen several times before.