The crypto markets took another big nose dive last night, shedding over $15 billion in a matter of hours before consolidating. This move comes as expected once we broke previous consolidation. Now, we're looking at another consolidation before another big pullback.

This whole move is ironic, and totally wipes out longer term hopes of having bulls step in to reverse the down trend that's been in effect since the end of December (or January for ETH).

One the whole, we're seeing a HUGE decline in public interest as the hype has faded from the huge bubble bursting (as was predicted and predictable during the boom). Below are some charts of google search trends for bitcoin, which illustrates the public perception and hype/demand shrinking. This in turn makes a huge dent in bull action which leads to bears taking over, further driving away bull action.

The above chart shows the interest over the last year.

The above chart shows search interest over the last 90 days.

The above chart shows interest over the last five years.

As you can see (and probably guessed the correlation), we see the peak search interest occur during the peak of the boom. This was where an extreme number of people were entering the market, causing the last influx of buyers and the last leg of parabolic movement to the upside before seeing the huge predictable correction.

Overall, I expect to see more times when the markets will pull back $15 billion in a matter of hours. They were so overbought and inflated for so long that the bear pressure is strong. Bulls will be back to buy dips which will prolong the overall pullback, just like happened during the long pullback from 2013-2015.

Hope everyone had a great weekend!

Happy trading!