Crypto Crash Or Correction, Market Capitalization Drops By 30%, Now What?
The market cap of all Cryptos peaked on Jan 7, 2018 at a price of $824 Billion, it now sits at $585 Billion.
Is this a Correction or Crash?
![cryptocrash01162018.jpg](https://steemitimages.com/DQmTHtKraQeMJEbGhveqS8RGvqEXC3qHpbJLmSzGwwkRVWB/cryptocrash01162018.jpg)
Total Market Cap of all Cryptos reached a peak of $824 Billion on Jan 7 2018.
Jan 16, 2018, the total market cap is at $ 585 Billion, that is a loss of 29% in the last 9 day.
The uptrend that started in November is now broken, we can expect further losses.
The Market Cap of all Cryptos could go to $250B-$300 Billion, with the first stop at $500 Billon or our lower support target at $469B.
Two Possible Trading Scenarios
Scenario 1 – Blue Trading pattern
Taking a closer look at the 3 month chart, there are a couple of possible trading scenarios that could play out. The correction could continue to the next support line at $469 Billion and then move up towards the new downtrend resistance line (red line) at about $650 Billion as show in the chart below
![cryptocrash0116G2.jpg](https://steemitimages.com/640x0/https://steemitimages.com/DQmSjN2S1c4SdxLRn7vGH51B8VBt6uCMcQS9YpK47xaJhuy/cryptocrash0116G2.jpg)
Scenario 2 – Green Trading pattern (Most Likely)
Or we could see the Crypto Market Cap rise to the new overhead resistance line (top red line) at about $650B, before we see the next leg down which could take the market cap to the support at $469 Billion. A new trend channel going down looks to be in place, once reaching the target, the trend can continue sideways in the new trading range.
The bottom line is that we are now in a downtrend and the correction will most likely continue. Because the uptrend line that has been in place since Nov has been broken to the downside, we are in a trend reversal, whether it goes sideways or continues lower is still to be determined, but the fact that the tend is now broken will lead to more selling.
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I think it's just on sale now, buy when it's low & sell when it's high...
Yes, it is on sale, but I have seen markets long enough to know that these corrections can last longer and go further than most people expect. I am expecting a bit of a rebound higher here, but the trend is down and I wouldn't doubt we see lower prices from here. The support line shown above is probably a realistic price target, that is a more favorable buy price based on what I see from the charts.
Bitcoin is dying and its dragging the entire market down with it. The markets are literally joined at the hip with BTC, and when BTC falls because people have realized how slow and unreliable it is, the larger market ( the new money, people who have been in the game for less than 5 months) panics as they believe that bitcoin IS the market, and if bitcoin fails, then everything else does. This is part of the issue when people like Warren Buffett go on record saying that "Bitcoin is a bubble and will burst" That part is true, for the most part, not many people are willing to pay $36 for a transaction, especially one that takes an hour or more to confirm, and even more so when the developers make little attempt to fix the BTC network -
But when everyday people hear things like this is causes a massive amount of irrational fear...coupled with news from South Korea which was false, as well as news from traditional outlets that claim the market and Bitcoin are constantly dying. We risk going into a free fall in prices within the next few weeks if people don't stop spreading false information. The market dropped by 30% just on false news and an assumption that Korea MIGHT POSSIBLY COULD BE MAYBE be banned from the markets. What would happen if over a 3 day period Fox News and CNN falsely reported that "Bitcoin" was going to be banned in the US, without any proper sources to back it up? The market would implode all based on a rumour. This is why its VERY important to not follow false channels, or people looking to hype coins, its causing the market to expand in a direction that it shouldnt be going, which is the hype, pump, dump and the market is burning scenarios. This has a lasting effect on the human mind, and we'll pay for it eventually.
elliot wave!
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