The Cryptocurrency Market Experiences Another Massive Dip

Markets 1 min, 36 sec READ

by William A. Ebbs

Market sentiment on cryptocurrency message boards turns hopeless as the sector enters into another major decline going into the weekend.

Market sentiment on cryptocurrency message boards turns hopeless as the sector enters into another major decline going into the weekend. Today's correction is even more severe than yesterday's with almost every single asset in the top hundred down by high single-digits or low double-digits in the last 24 hours. The top ten is holding out a little better than the rest of the market with most of the assets down by mid-single-digits.

Volatility in the market seems to be increasing, and we may be at the beginning of another violent downtrend. For the first time in weeks, the price correlation between the top assets appears to be weakening, and this is probably the result of a substantial increase in trade volume over the previous days. The total cryptocurrency market is now worth $234.9 billion with Bitcoin dominance increasing slightly to 43.1% of the total.

Technical Analysis

With no positive news catalyst for Bitcoin or any of the other top assets, the entire cryptocurrency market has followed BTC into a substantial decline. Bitcoin has fallen below the key psychological level of 6,000 against the USD and now faces resistance there. The BTC market is developing into a clear downward channel pattern that can be expected to unwind all the way to the $5400 level in the near term.

Taking a Long-Term View on the Crypto Market

The cryptocurrency market is clearly in a long-term bear market, and this situation is reminiscent of the multiple crashes the sector experienced earlier in the decade. So far, the current bear market is not the longest or the most severe on record (November 30, 2013, to January 14, 2015, takes that title), but that won't be the case much longer if things continue on this trajectory.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.