Since January 7th the crypto total market cap went from 832 billion to 417 billion, almost a 50% decline.
Since the bulk of the cryptos follows BTC, that is the chart that will be reviewed here. The #1 question: Is the crash/correction over? Based on the technicals on the daily and 4 hour charts, no as the price has not produced higher highs and higher lows.
The daily chart with Heikin Ashi overlay on the candlesticks shows the breakdown through the lower trend line.
BTC was going to break either up or down as price was inching closer to the end.
BTC is also still producing red bars which is obviously bearish.
Stochastics are embedded to the downside (Both K & D lines are under 20)
Another look at the daily chart with a bollinger band and moving averages.
Two bars closed below the bottom bollinger band and the last bar appears to have closed within the bands.
The 20 day moving average has crossed over the 50 day which is a bearish signal.
Looking at a 4 hour chart with trend lines provides a different view, one that clearly shows that the downtrend is trading within the channel.
BTC recently bounced off of the lower line and may find resistance at the previous low of 12,500 if price continues to appreciate. (Data for the chart is from Coinbase)
BTC will technically be in an uptrend when it closes higher than 14,253 and any pullback does not close below that number. (Quite a ways to go from the current price of ~11,724...)
The hourly chart show a V bottom and a strong rebound off of the bottom trend line
A daily (semi convoluted) comparison line chart of:
BTC in Red
ETH in Blue
LTC in Yellow
Dash in Green
BCH in Orange
It's interesting to see that ETH was rising while the other top cryptos were falling.
China and S Korea potential government crackdown started off the selloff. The cryptosphere has seen a plethora of negative news before and has always shrugged it off. This time IMO will not be any different.
I made a post the other day that showed the lowest price for BTC was in January over the past 3 years. 2018 may be the 4th year in a row.
Agree, it's another January for Bitcoin lowest price.
By the way it's a Golden opportunity to enter into crypto.
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That market cap chart is really amazing. Went from 550/600 million up to 850m, down to 400, and we're almost back to the 550/600 range - in 3 weeks.
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Cryptos are one of the most volatile markets around. The 50% cut 2 times may have been the double bottom... we will know in a few weeks
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50% correction sounds about right.. Sure the big whales made a killing on their futures contracts and may now cover their shorts.. Let's hope and pray public blockchains such as btc survive and thrive.. the alternative is more of the same shadow banking and currency destruction...
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I'm sure those that speculate in the futures markets have their eyes on the screens 24/7. (Unless they have high frequency trading, so they do not even have to be there)
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Agree with you.
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Buy the dip!
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This post has received gratitude of 1.90 % from @appreciator thanks to: @glennolua.
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Nice information
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