The crypto market has shed over $25 billion in value over the course of the afternoon hours, as Bitcoin price was rejected at $13,000, sending it quickly below $12,000, and is at risk of falling further now that the bullish momentum is waning. Altcoins have also been dropping like flies amidst the powerful Bitcoin move.
With the crypto market now uncertain about the direction, what’s next for Bitcoin price? And when might altcoins finally bounce and start bringing some much needed relief to HODLers of the alternative asset class?
Bitcoin Price Smashes Below $12,000, Is Below $11,000 Next?
Bitcoin price traded above $13,000 at the start of the day, but it may end it thousands of dollars below, now that Bitcoin’s bullish rally is in the first real jeopardy it’s been in since it first began back in April.
Throughout the 2019 parabolic rise in Bitcoin price, corrections have been shaken off without so much as a scratch for investors of the emerging digital asset class. But that all changed when Bitcoin approached $14,000, and it was violently rejected. Since then Bitcoin hasn’t been able to reclaim the important resistance point between it and all-time high.
Worse yet, on the way back up to make another reattempt at breaking above $14,000, Bitcoin was stopped short just above $13,000, sending it down well over $1,000 to a current price of below $11,800.
Altcoins Capitulate, Fueling BTC Collapse and Erasing $25 Billion in Market Cap
Shortly before Bitcoin price collapsed, altcoins began to break through their support floor that’s lasted since the start of 2018. Now the alternative assets are plummeting, and may have dragged Bitcoin and the rest of the total market cap with the rest of them.
Altcoins may not have bottomed the same way Bitcoin did back in December. While a strong bounce certainly occurred, bringing some hope that a new “alt season” was almost guaranteed. However, HODLers holding out for hope are being tested today as altcoins have dropped in value as much as 5-10% and more across the board.
The bleeding caused the total crypto market cap to have over $25 billion in value evaporated from it in the matter of a couple hours. The flight of capital initially was investors escaping falling altcoin prices, but once Bitcoin started dropping alongside alts, the real downward pressure began.
Altcoins have shown some signs of bouncing here, but may still have further to fall. In the past once altcoins bottomed, they vastly underperformed Bitcoin, so buying the blood in the streets here may be wise. Of course, the panic could ensue a lot longer than expected which would make buying here extremely dangerous, so exercise extreme caution if considering setting an order for any altcoins here.
Featured image from Shutterstock
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Author: Tony Spilotro